A report in The Independent notes that Holland is to become the first country in Europe to introduce a green tax to replace annual road tax on cars.

Drivers will have to pay per kilometre driven in a bid to end chronic traffic jams and cut carbon emissions. The system, which will use Global Positioning Systems (GPS) to monitor cars, could be used as a test case for other countries weighing options for easing crowded roads. Singapore has a similar scheme for charging according to the amount of travel. When the plan takes effect in 2012, new car prices could fall by as much as 25% with the abolition of purchase and road taxes. Instead, an average passenger car will pay EUR.03 per kilometre, with higher charges levied during rush-hour and for travelling on congested roads.
Full report in The Independent