Europe and Iceland Propose Per-Kilometer Tax for Cars

Published on January 12, 2026 | Translated from Spanish
Map of European roads with lines representing routes and an overlaid digital speedometer showing a cost per kilometer, symbolizing the new toll system.

Europe and Iceland Propose a Per-Kilometer Tax for Cars

The European Union and Iceland are evaluating a radical change in how vehicles are taxed. 🚗 The central idea is to move from traditional taxes for owning a car or buying fuel, to a system that charges based on actual road usage. This means you would pay for every kilometer you drive.

A Tax Model for New Mobility

This change directly responds to the transition to electric cars. đŸĒĢ Since these vehicles do not consume hydrocarbons, governments are losing a key source of revenue used to maintain roads and bridges. The new model seeks to ensure that all drivers, regardless of engine type, contribute proportionally to their use of the infrastructure. It is presented as a fairer system: who drives more, pays more.

Main objectives of the change:
  • Replace or complement current fees linked to vehicle ownership or fuel.
  • Ensure a stable source of funding to build and repair road infrastructure.
  • Adapt tax collection to the increase in electric cars that do not pay fuel taxes.
The system is proposed as fairer, since those who use the roads more pay more.

The Technological and Privacy Challenge

To make this per-kilometer toll work, a reliable method is needed to measure the distance traveled by each vehicle. 📍 This is where the most intense debates arise. The options being considered include installing devices with GPS in cars or recording kilometers in mandatory technical inspections.

Critical points under discussion:
  • Drivers' privacy: how location and travel data are collected, stored, and protected.
  • The implementation costs of the necessary technology on a large scale in millions of vehicles.
  • The reliability and security of the chosen system to avoid fraud or billing errors.

Towards a Future of Measured Driving

This project could transform the driving experience, making every trip have a direct tax cost calculated precisely. 🧮 The intention is not only to collect revenue but also to influence behavior, incentivizing the reduction of unnecessary trips and optimizing mobility. The path to its implementation still has to resolve important technical and social acceptance issues.