![Betalstation 2010](https://upload.wikimedia.org/wikipedia/commons/0/09/Betalstation_2010.jpg)
The Stockholm congestion tax ( sv, Trängselskatt i Stockholm), also referred to as the Stockholm congestion charge, is a
congestion pricing system implemented as a
tax levied on most vehicles entering and exiting central
Stockholm
Stockholm () is the Capital city, capital and List of urban areas in Sweden by population, largest city of Sweden as well as the List of urban areas in the Nordic countries, largest urban area in Scandinavia. Approximately 980,000 people liv ...
,
Sweden
Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic country located on ...
.
The congestion tax was implemented on a permanent basis on August 1, 2007,
after a seven-month trial period between January 3, 2006 and July 31, 2006.
It was inspired by
Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
's
Electronic Road Pricing
The Electronic Road Pricing (ERP) system is an electronic toll collection scheme adopted in Singapore to manage traffic by way of road pricing, and as a usage-based taxation mechanism to complement the purchase-based Certificate of Entitleme ...
(ERP) system, which first introduced it in 1975.
The primary purpose of the congestion tax is to reduce
traffic congestion
Traffic congestion is a condition in transport that is characterized by slower speeds, longer trip times, and increased vehicular queueing. Traffic congestion on urban road networks has increased substantially since the 1950s. When traffic de ...
and improve the
environmental
A biophysical environment is a biotic and abiotic surrounding of an organism or population, and consequently includes the factors that have an influence in their survival, development, and evolution. A biophysical environment can vary in scale f ...
situation in central Stockholm.
The funds collected will be used for new road constructions in and around Stockholm.
A referendum was held in September 2006, a few months after the end of the trial period. In the referendum the residents of Stockholm municipality voted yes and in 14 other municipalities voted no to implement it permanently. On October 1, 2006, the leaders of the winning parties in the
2006 general election, declared they would implement the Stockholm congestion tax permanently.
The
Riksdag
The Riksdag (, ; also sv, riksdagen or ''Sveriges riksdag'' ) is the legislature and the supreme decision-making body of Sweden. Since 1971, the Riksdag has been a unicameral legislature with 349 members (), elected proportionally and se ...
approved this on June 20, 2007,
and the congestion tax came into effect on August 1, 2007.
On 1 January 2016, congestion taxes were increased in the inner-city parts of
Stockholm
Stockholm () is the Capital city, capital and List of urban areas in Sweden by population, largest city of Sweden as well as the List of urban areas in the Nordic countries, largest urban area in Scandinavia. Approximately 980,000 people liv ...
, and also the congestion tax began to be charged on
Essingeleden Essingeleden is a motorway that goes from Solna to Stockholm, Sweden, crossing the westmost parts of central Stockholm, by going over Kungsholmen, Lilla Essingen, and Stora Essingen.
Essingeleden has three bridges – Fredhällsbron (270 m), Essin ...
. The measure was implemented not only to improve accessibility and the environment, but also to help develop the infrastructure.
Affected area
The congestion tax area encompasses essentially the entire
Stockholm City Centre
Stockholm City Centre (''Stockholms innerstad'', ''Innerstaden'', ''Inre staden'') is in Stockholm Municipality, also known as the City of Stockholm, part of the Stockholm urban area in Sweden.
Since 2007, Stockholm City Centre has been organize ...
, which includes
Södermalm
Södermalm, often shortened to just Söder, is a district and island in central Stockholm.
Overview
The district covers the large island of the same name (formerly called ''Åsön''). Although Södermalm usually is considered an island, wat ...
,
Norrmalm,
Östermalm
Östermalm (; "Eastern city-borough") is a 2.56 km2 large district in central Stockholm, Sweden. With 71,802 inhabitants, it is one of the most populous districts in Stockholm. It is an extremely expensive area, having the highest housing p ...
,
Vasastaden Vasastan, or Vasastaden, may refer to:
* Vasastan, Stockholm, a district in Stockholm, Sweden
* Vasastan, Gothenburg, a district in Gothenburg, Sweden
* Vasastaden, Linköping
Vasastaden is a city district in Linköping, consisting of mostly apa ...
,
Kungsholmen
Kungsholmen is an island in Lake Mälaren in Sweden, part of central Stockholm, Sweden. It is situated north of Riddarfjärden and considered part of the historical province Uppland. Its area is with a perimeter of . The highest point is at S ...
,
Stora Essingen,
Lilla Essingen
Lilla Essingen is a small island in central Stockholm, Sweden.
It is located on Lake Mälaren next to the larger neighbouring island of Stora Essingen.
Both Essingen Islands (''Essingeöarna'') are mainly residential areas, the smaller densely p ...
and
Djurgården.
There are unmanned electronic control points (in Swedish: , literally ''payment station'')
at all entrances to this area. The congestion tax is applied on both entry and exit of the affected area.
From 1 January 2016, the congestion tax began to be charged in on
Essingeleden Essingeleden is a motorway that goes from Solna to Stockholm, Sweden, crossing the westmost parts of central Stockholm, by going over Kungsholmen, Lilla Essingen, and Stora Essingen.
Essingeleden has three bridges – Fredhällsbron (270 m), Essin ...
motorway
A controlled-access highway is a type of highway that has been designed for high-speed vehicular traffic, with all traffic flow—ingress and egress—regulated. Common English terms are freeway, motorway and expressway. Other similar terms i ...
. Congestion tax was introduced at the access and exit ramps of two
interchanges on Essingeleden in order to reduce traffic jams in peak periods, and with shorter traffic jams on Essingeleden, the surrounding roads are expected to have shorter tailbacks. The control points on Essingeleden are located at the Kristineberg Interchange and at the access and exit ramps for Tranebergsbron at the Fredhäll Interchange. The transport agencies involved expect to reduce traffic on Essingeleden by some 10% in peak hours.
[ One week after the tax began to be charged, traffic on the motorway had decreased by 22% compared to a normal day in mid-December.]
Amount of tax to pay
The amount of tax payable depends on what time of the day a motorist enters or exits the congestion tax area. There is no charge on Saturdays, Sundays, public holidays
A public holiday, national holiday, or legal holiday is a holiday generally established by law and is usually a non-working day during the year.
Sovereign nations and territories observe holidays based on events of significance to their history, ...
or the day before public holidays, nor during nights (18:30 – 06:29), nor during the month of July.
The congestion tax was raised in January 2016, the first increase of the tax since it was introduced permanently in 2007.[ The highest increase took place at the two highest rush hour periods, 7:30 to 8:29, and 16:00 to 17:29, from SEK 20 to SEK 35. The objective was to steer the traffic towards other times of the day and public transport, and in this way reduce congestion in the Inner City area. Also the maximum amount levied was raised to SEK 105 per day and vehicle. The additional funds will contribute to finance the extension of the ]Stockholm metro
The Stockholm metro ( sv, Stockholms tunnelbana) is a rapid transit system in Stockholm, Sweden. The first line opened in 1950, and today the system has 100 stations in use, of which 47 are underground and 53 above ground. There are three colou ...
.[
The following table summarizes the charges for ]Essingeleden Essingeleden is a motorway that goes from Solna to Stockholm, Sweden, crossing the westmost parts of central Stockholm, by going over Kungsholmen, Lilla Essingen, and Stora Essingen.
Essingeleden has three bridges – Fredhällsbron (270 m), Essin ...
and the Inner City since 1 January 2016.[
1) Tax amount shown in ]Euro
The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
for comparative purposes. Currency rates .[Google currency rates: "1 SEK in EUR"](_blank)
/ref>[Google currency rates: "1 SEK in USD"](_blank)
/ref>
Method of payment
Payment of the congestion tax cannot be made at the control points — they merely register which vehicles have passed them. A bill
Bill(s) may refer to:
Common meanings
* Banknote, paper cash (especially in the United States)
* Bill (law), a proposed law put before a legislature
* Invoice, commercial document issued by a seller to a buyer
* Bill, a bird or animal's beak
Plac ...
is sent to the vehicle owner at the end of each month, with the tax decisions for the preceding month's control point passages. The bill must be paid before the end of the next month. The vehicle owner is responsible for the payment of the tax, even if the bill does not arrive.
The bill can be delivered in three different ways. By default delivery by mail to the vehicle owner's registered address, or opting for electronic delivery to the vehicle owner's Internet bank A direct bank (sometimes called a branch-less bank or virtual bank) is a bank that offers its services only via the Internet, email, and other electronic means, often including telephone, online chat, and mobile check deposit. A direct bank has no ...
, or opting for a direct debit arrangement called ''Autogiro''[Bankgirot — Autogiro](_blank)
that allows the tax to be automatically deducted from the vehicle owner's bank account when the bill is due.
Failure to pay the tax within the allotted time results in a reminder bill being sent with an added 500 SEK fee. If the tax along with the reminder fee is still unpaid within 30 days after the reminder bill was sent, the case will be forwarded to the Swedish Enforcement Administration
The Swedish Enforcement Authority ( sv, Kronofogdemyndigheten; literally: ''The Crown Bailiff Authority'') is a government agency in charge of debt collection, distraint, evictions, and the enforcement of court orders in Sweden. The authority also ...
, which adds an additional fee of at least 600 SEK, and the vehicle owner will be noted in the Enforcement Register unless payment is made.
The same rules are from 2015 valid for foreign-registered vehicles. The authority has contracted collection agencies
Collection or Collections may refer to:
* Cash collection, the function of an accounts receivable department
* Collection (church), money donated by the congregation during a church service
* Collection agency, agency to collect cash
* Collections ...
in the most common countries who charge the owners.
Tax deductibility
The congestion tax may be deducted from taxable income for both private individuals and businesses. Private individuals may deduct the congestion tax for business journeys, and for traveling between the home and workplace according to the usual rules of car cost deduction (1:80 SEK/km), that is if the distance is at least and the time saved by traveling by own car compared to public transport is at least 2 hours per day. If this is not valid, the public transport cost can be deducted (without congestion tax). The first 10.000 SEK can not be deducted (the public transport pass inside Stockholm county costs 8.400 SEK during year 2016). Businesses may deduct all congestion tax expenses, also private driving with company cars (there is a general tax on the right to drive company cars in private).
Exemptions from the congestion tax
Exempt vehicles
Some classes of vehicles are exempt from the congestion tax:
* Emergency services vehicles
* Buses with a total weight of at least 14 tonne
The tonne ( or ; symbol: t) is a unit of mass equal to 1000 kilograms. It is a non-SI unit accepted for use with SI. It is also referred to as a metric ton to distinguish it from the non-metric units of the short ton ( United State ...
s
* Diplomatic corps registered vehicles
* Motorcycle
A motorcycle (motorbike, bike, or trike (if three-wheeled)) is a two or three-wheeled motor vehicle steered by a handlebar. Motorcycle design varies greatly to suit a range of different purposes: long-distance travel, commuting, cruising ...
s
* Military vehicles
* Cars that according to the Swedish Road Administration
The Swedish Road Administration ( sv, Vägverket), formerly The Royal Board for Public Road and Water Structures, was a Government agencies in Sweden, Government agency in Sweden. Its primary responsibility was to organise building and maintenanc ...
's vehicle registry are equipped for propulsion with entirely or partially with electricity, or other fuel gas
Fuel gas is any one of a number of fuels that under ordinary conditions are gaseous. Most fuel gases are composed of hydrocarbons (such as methane or propane), hydrogen, carbon monoxide, or mixtures thereof. Such gases are sources energy that c ...
than liquefied petroleum gas
Liquefied petroleum gas (LPG or LP gas) is a fuel gas which contains a flammable mixture of hydrocarbon gases, specifically propane, propylene, butylene, isobutane and n-butane.
LPG is used as a fuel gas in heating appliances, cooking e ...
, or with a fuel mixture that predominantly consists of alcohol
Alcohol most commonly refers to:
* Alcohol (chemistry), an organic compound in which a hydroxyl group is bound to a carbon atom
* Alcohol (drug), an intoxicant found in alcoholic drinks
Alcohol may also refer to:
Chemicals
* Ethanol, one of sev ...
. This exemption is no longer valid for newly purchased vehicles, but remains valid for vehicles purchased between January 1, 2009 and August 1, 2012.
* Cars with parking permit for disabled persons, after application to the Swedish National Tax Board. This exemption is not valid if the car is used for professional purposes.
Foreign-registered vehicles were exempt from the congestion tax until 2014. This was mainly for practical reasons, as it was hard to get access to foreign car registers and to claim payment from foreign citizens. The exemption was removed as a result of objections from companies relating to unfair taxation, and because the "Eurovignette" EU directive (1999/62/EC article 7 and 2006/38/EC) requires that user charges may not discriminate on the grounds of the nationality of the haulier or the origin of the vehicle.
Technology
The vehicles passing the control points are identified through automatic number plate recognition
Automatic number-plate recognition (ANPR; see also #Other names, other names below) is a technology that uses optical character recognition on images to read vehicle registration plates to create vehicle location data. It can use existing close ...
. The equipment, consisting of cameras, laser detectors, antennas, and information signs are mounted on a set of gantries at each control point.
There are no payment booths at the control points, they are all unmanned and payment is done by other means later (see '' Method of payment'' above). At a traditional toll booth, a substantial percentage of the toll goes to costs for the staff, which is avoided here.
For those living on the island of Lidingö
Lidingö, also known in its definite form ''Lidingön'' and as ''Lidingölandet'', is an island in the inner Stockholm archipelago, northeast of Stockholm, Sweden. In 2010, the population of the Lidingö urban area on the island was 31,561. It is ...
or otherwise often traveling there, an optional DSRC transponder can be used also to more accurately identify the vehicles, as an incorrect identification results in the Lidingö exemption rule not taking effect (see '' Geographic exemptions'' above). The DSRC transponders that were used during the congestion tax trial period are useless now and should be returned to the Swedish Road Administration
The Swedish Road Administration ( sv, Vägverket), formerly The Royal Board for Public Road and Water Structures, was a Government agencies in Sweden, Government agency in Sweden. Its primary responsibility was to organise building and maintenanc ...
.
History
Debate
The congestion tax was before its inception a highly debated proposition, especially in the peripheral parts of Stockholm county where residents who lived outside of the control points but worked in the city center argued that they should also have a say in whether the proposition was to be accepted. In the time since the control points were put in place, however, the debate has calmed down considerably as the system works smoothly and the actual cost of passing these stations is acceptable to most residents, as well as the fact that central Stockholm has been getting cleaner since the proposition went into action.
The debate has instead in many instances shifted toward the political reasons behind the proposition, where some argue that the proposition is simply a way to punish the residents of Stockholm for the centralized Swedish political system, which reportedly many people in rural parts of Sweden feel favours Stockholm above other regions.
Initially this was planned as a congestion fee
A fee is the price one pays as remuneration for rights or services. Fees usually allow for overhead, wages, costs, and markup. Traditionally, professionals in the United Kingdom (and previously the Republic of Ireland) receive a fee in contra ...
, not a tax. But the Swedish government
The Government of the Kingdom of Sweden ( sv, Konungariket Sveriges regering) is the national cabinet of Sweden, and the country's executive authority.
The Government consists of the Prime Ministerappointed and dismissed by the Speaker of the R ...
ruled that this kind of endeavor was considered a tax and not a fee, and thus this was made a governmental tax, not a local tax, as municipalities in Sweden are not allowed to create new taxes.
Trial period
A seven-month trial period of the congestion tax, called ''The Stockholm trials'' (), took place between January 3, 2006 and July 31, 2006. In addition to the optical recognition of license plates, DSRC transponders were used to identify vehicles, and opting to use one was a precondition for using direct debit for the payment of the tax.
The Road Administration have claimed that traffic passing in and out of the cordon reduced by between 20 and 25% during the period of the trial, and that air quality improved; after the trial, traffic volumes built up again. 96% complied with paying the tax on time, which raised 399 m SEK during the period.
Referendum
Local consultative referendum
A referendum (plural: referendums or less commonly referenda) is a direct vote by the electorate on a proposal, law, or political issue. This is in contrast to an issue being voted on by a representative. This may result in the adoption of a ...
s regarding whether to permanently implement the congestion tax were held in Stockholm Municipality
Stockholm Municipality or the City of Stockholm ( sv, Stockholms kommun or ) is a municipality in Stockholm County in east central Sweden. It has the largest population of the 290 municipalities of the country, but one of the smallest areas, maki ...
and several other municipalities in Stockholm County
Stockholm County ( sv, Stockholms län, link=no ) is a county or '' län'' (in Swedish) on the Baltic Sea coast of Sweden. It borders Uppsala County and Södermanland County. It also borders Mälaren and the Baltic Sea. The city of Stockholm ...
on September 17, 2006.
It was only the referendum in Stockholm Municipality that the at the time reigning government would use as a basis for the decision.
The municipalities surrounding Stockholm in Stockholm County
Stockholm County ( sv, Stockholms län, link=no ) is a county or '' län'' (in Swedish) on the Baltic Sea coast of Sweden. It borders Uppsala County and Södermanland County. It also borders Mälaren and the Baltic Sea. The city of Stockholm ...
, especially those that are part of the city of Stockholm
Stockholm () is the Capital city, capital and List of urban areas in Sweden by population, largest city of Sweden as well as the List of urban areas in the Nordic countries, largest urban area in Scandinavia. Approximately 980,000 people liv ...
, showed discontent with the fact that the people of those municipalities get no say whether the congestion taxes will be implemented permanently. A substantial number of the inhabitants of the nearby municipalities travel to and from work through the congestion tax area. Therefore, several of these municipalities decided also to have local referendums. A municipality is allowed to hold a consultative referendum at any time, but as the congestion tax had to be decided at the national parliament level it was unclear how the results would be interpreted if the government there changed after the 2006 general election, which was held the same day as these referendums.
In Stockholm the question asked on the ballots was (translated from Swedish): :sv:Trängselskatt i Stockholm#Fördelning och demokrati
''Environmental fees/congestion tax means that fees will be charged in road traffic with the purpose to reduce queuing and improve the environment. The income will be returned to the Stockholm region for investments in public transport and roads.''
In the other municipalities the question on the ballots were (translated from Swedish):
''Do you believe that congestion tax should be permanently introduced in Stockholm?''
Results
Results from the referendums. The figures and percentages do not include blank and invalid votes.
Interpretation of the results
Prior to, and a short while after, the election day it was not clear how big of an effect the results of the municipal referendums would have, especially for the referendums held in the municipalities other than Stockholm.
The Social Democratic
Social democracy is a political, social, and economic philosophy within socialism that supports political and economic democracy. As a policy regime, it is described by academics as advocating economic and social interventions to promote soci ...
government prior to the 2006 general election ( cabinet Persson) stated that they would only take into consideration the results of the referendum held in Stockholm Municipality, while the opposition parties (Alliance for Sweden
The Alliance ( sv, Alliansen), formerly the Alliance for Sweden (''Allians för Sverige''), was a centre-right liberal-conservative political alliance in Sweden. The Alliance consisted of the four centre-right political parties in the Riksdag. Th ...
) stated that they would take into consideration the results of referendums the other municipalities as well if they won the election.
The opposition parties won the election and before they formed a government ( cabinet Reinfeldt) their party leaders announced on October 1, 2006 to implement the congestion tax permanently, and that the revenue would go entirely to new road constructions in and around Stockholm instead of entirely to public transport in Stockholm
Public transport in Stockholm consists of bus, metro, commuter rail, Inter-city rail, regional rail, light rail, tram, commuter ferry and an archipelago boat operation in Stockholm County, Sweden. The bus and rail is organized by Storstockholms ...
as it was during the trial period. The Riksdag
The Riksdag (, ; also sv, riksdagen or ''Sveriges riksdag'' ) is the legislature and the supreme decision-making body of Sweden. Since 1971, the Riksdag has been a unicameral legislature with 349 members (), elected proportionally and se ...
approved the congestion tax on June 20, 2007, for reintroduction on August 1, 2007.
Effects
From 2006 to 2011, despite a reduction in traffic and increase in favorable public opinion congestion in Stockholm increased.
Criticism
Automatic number plate recognition
The automatic number-plate recognition has its shortcomings. Number plates from Finland and Lithuania
Lithuania (; lt, Lietuva ), officially the Republic of Lithuania ( lt, Lietuvos Respublika, links=no ), is a country in the Baltic region of Europe. It is one of three Baltic states and lies on the eastern shore of the Baltic Sea. Lithuania ...
have a similar format compared to Swedish number plates, with three letters and three digits. The system can't see the difference, and a Swedish owner might falsely be charged.Trängselskatt - var inte ens i Göteborg
/ref> Also stolen and forged plates have caused false payment demand on innocent people. All vehicles are photographed so people who notice the false charging and object will have the charge waived.
See also
* Road pricing
Road pricing (also road user charges) are direct charges levied for the use of roads, including road tolls, distance or time-based fees, congestion charges and charges designed to discourage the use of certain classes of vehicle, fuel sour ...
* Congestion pricing
* Electronic toll collection
* Gothenburg congestion tax
* Milan Area C
Area C is a congestion charge active in the city center of Milan, Italy. It was introduced in 2012, replacing the previous pollution charge Ecopass and based on the same designated traffic restricted zone. The area is about with 77,000 reside ...
* San Francisco congestion pricing
* Electronic Road Pricing (Singapore)
* Singapore Area Licensing Scheme
The Singapore Area Licensing Scheme (ALS), (Malay : Skim Perlesenan Kawasan Singapura) was a road pricing scheme introduced in 1975 to 1998, charged drivers who were entering downtown Singapore, and thereby aimed to manage traffic demand. This w ...
* London Congestion Charge
The London congestion charge is a fee charged on most cars and motor vehicles being driven within the Congestion Charge Zone (CCZ) in Central London between 7:00 am and 6:00 pm Monday to Friday, and between 12:00 noon and 6:00 pm Saturday an ...
* Manchester congestion charge
References
Further reading
*
External links
* Swedish Transport Agenc
Congestion tax in Stockholm
{{DEFAULTSORT:Stockholm Congestion Tax
Local taxation
Transport in Stockholm
Electronic toll collection
Urban planning in Sweden
Road congestion charge schemes
Vehicle taxes
Taxation in Sweden
Car costs
Driving in Sweden