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DukeIsn't that just what the petrol tax is for? Face it, it's an excuse to get GPS locaters inserted into all cars.
Actually, introducing toll roads around London was a great success. After that, they figured it would be 'cool' to have something like that nation-wide. The most efficient way to do that would be the GPS locaters.
I'm not so sure this is a good idea. It'll probably be easy to mess with and initially very expensive. But the general idea, to make you pay according to your use, is definitely a good idea, from my point of view. First of all, it does help make roads less congested. It has been shown that many companies will, when thus financially stimulated, all of a sudden discover that all employees do not, in fact, have to start at 8:30am, for instance, or that working at home actually sometimes does work very well.
Also, for people who drive little, owning a car is currently very expensive. I pay 50$ a month just to have my car - insurance and tax. But I generally only drive late in the evening or at quiet moments in the weekends, though usually a fair distance then. I would be better off just renting a car most of the time, except that because I only got my licence last september and I can't rent a car at most places before I've held my licence for at least a year. But having a car has a lot of plusses - if you decide you need one in the evenings, it's often impossible to rent one at the last minute (there are some services for this in some of the greater cities where you can book something online 2 hours in advance if you're preregistered, but not in mine, and you're limited to one type of car). Anyway, I don't need to explain on this site, a car can be your own private space and property, and quite enjoyably so.
So the option would be to move all taxes to fuel, or to come up with something different. Moving all taxes to fuel means I'm still paying a lot more than I should for using the roads and my car at times when they are both a lot less expensive to use.
Therefore I think the general idea of paying for use is a good one. But I think it should be set up differently. The country should be setup in different timezone and region classifications which have different taxations applied to them. The only thing that should then be tracked is how many km you've been driving in any of the different zones. You should be able to set up a system that works like this, without actually tracking where you've been driving or where you are at any given time.
Of course, I do see the full GPS system would offer a lot of advantages in that it offers very precise data on traffic that will allow for very precise planning for anything involving traffic. You'd know where each car drives everyday and when, how often it ends up being congested, where, and so on. But privacy is important also.
(I personally don't mind if they connect a fair system to enforcing speed limits, by the way.)