3-Euro-cent-per-km mileage tax might become law in the Netherlands

A mileage tax has been in discussion here in the U.S., but doesn't look likley to become law. The situation is very different in the Netherlands, where the Dutch cabinet approved legislation that would replace ownership and sales taxes on automobiles with a 3 Euro cent (about 4.5 U.S. cents) fee per kilometer starting in 2012. The next step is for Parliament to pass the law, something that is very likely. If approved, the fee would climb to 6.7 Euro cents (10 U.S. cents) in 2018. What's the point of doing this? The Dutch Transport Ministry believes that these pay-as-you-go fees will result in a ten percent drop in CO₂ emissions and congestion reduced to half of what it is today.
One question with schemes like this is how to calculate how far people are driving. GPS is a simple solution, but then the government knows where your car is, which doesn't sit well with some people. A mileage tax test in Oregon used a limited GPS-tracking system to determine payment rates. From the looks of it, the system in the Netherlands will use GPS data that will be sent to a collection agency. Thanks to Mark F. and Alef A. for the tips!

[Source: AFP via Wired]