Proceeds from provincial road tax nearly 7 percent up

Provinces expect total proceeds from road tax surcharge to increase to by 1.4 billion euro this year, i.e. 6.7 percent more than in 2008. With 13.5 percent, the highest increase was registered in the province of North Holland, the lowest (2.4 percent) in the province of Gelderland.

Increase proceeds from road tax surcharge by province, 2009

Lowest rate in North Holland

The total surcharge rate for car and motorcycle owners in North Holland is expected to rise by 13.5 percent in 2009. Yet, with 67.9 percent, North Holland still has the lowest surcharge in the country. With 95 percent, the province of South Holland has the highest surcharge rate and expects surcharge proceeds to increase by 8.5 percent.

The road tax surcharge is a general fund and the proceeds are not earmarked. North Holland intends to use the surcharge proceeds to contribute to the provincial investment programme. South Holland will use it to improve accessibility and mobility. 

Road tax surcharge main source of income in South Holland

For all provinces, proceeds from the road tax surcharge and the contribution from the Provincial fund are the main income sources, but the differences between the various provinces are considerable. With 27 and 31 percent respectively, surcharge proceeds from road tax are the main source of income in North and South Holland. In the province of Zeeland, the Provincial fund is the main income source. Surcharge proceeds account for just under 11 percent of the budget.

Other major income sources for provinces are specific payments and revenues from interest and dividends.

Share road tax surcharge and Provincial fund in provincial budgets, 2009

Arlen Hoebergen