strategy

Introducing distance charges for heavy goods vehicles

Description:
Levying a charge for use of public roads by heavy goods vehicles that comprises infrastructure costs, environmental costs and other external costs of road traffic. The charge might cover maximum laden weight, vehicle size and kilometres driven, and noise and air pollution of the vehicle. Extra charges might be levied in particularly sensitive regions.
Context:
Lorries, trucks and other heavy goods transport vehicles generally pay flat-rate taxes which means that every lorry pays the same, regardless of whether it drives 5,000 or 100,00 kilometres a year. Kilometre charges depend on the distance travelled and thus make those who pollute more pay more.
Implementation:
In September 1999, Switzerland adopted a kilometre charge for heavy goods vehicles. It is the first tax in Europe to cover the main external costs caused by heavy goods vehicles, comprising health, noise and damage to buildings). According to a Swiss haulier organization, every fourth lorry is superfluous and will disappear after the introduction of the kilometre charge.
Subjects:
Vehicles
Finance
Merchandise
Type Classification:
G: Very Specific strategies