Road traffic causes a large proportion of carbon emissions. Using less fuel would help matters.
The new tax does not differentiate between various kinds of vehicle propulsions, but tries to create one simple and understandable model. According to that model, carbon dioxide emissions, measured in a standardised way, are determined in a tiered manner on the basis of a car’s emissions.
Separate from the tax on buying a car, this tax is to be paid annually.
Car dealers and environmental organisations alike have applauded the government’s move. Environment activists have however criticised the change for making cars with average fuel consumption effectively more affordable.