The Netherlands has announced that it intends to replace its annual road tax on cars with a green tax that is aimed at reducing carbon emissions.
Under the plans, cars will be taxed by the kilometre in a pay-as-you-drive scheme. The Dutch government hopes that this will help to reduce carbon emissions by ten per cent and halve congestion levels on the country's roads.
A statement from the Netherlands Transport Ministry explained that every car would be fitted with a GPS tracker. The data from this device would be collated by a collection agency that would then send a bill to the driver.
The new scheme is due to start in 2012 and will also see the abolition of purchase taxes on new cars.
Drivers will be charged an average of three euro cents per kilometre (£0.04 pence per mile), with this amount due to increase every year until 2018.
Germany's Green Party has spoken out in favour of the new Dutch system and called on its own government to take similar measures, according to a report from German news agency Deutsche Welle.
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