The Netherlands recently announced its plans to cut co₂ emissions by 30 per cent by 2020. To achieve the target, it has proposed that an additional tax be imposed on cars that exceed the permissible limit of co₂ emissions.

The cars will be required to pay an additional tax of Euro 80-90 (us $107 to 121) for every gramme (g) of co₂ emitted above the limit. The threshold for gasoline cars is fixed at 240 g of co₂ per km, while that for diesel cars is at 200 g per km. The additional tax will be levied as part of the car registration tax. However, taxes in the case of cars with relatively low co₂ emission rates will be lowered. The government says the move will help the owners of low-polluting and hybrid cars save money in taxes.

A statement released by the finance ministry notes the plan will badly hit the gas-guzzling sport utility vehicles. The government has also announced a tax relief to the employees who choose a car with a co₂ emission rate below 110 g per km. The plan will come into force from January 2008.