APIA: New Car Tax In Romania Will Lead To ‘Total Confusion’

A new amendment to Romanian car tax law will trigger “total confusion” in the auto industry, the Automotive Manufacturers and Importers Association, or APIA, said Thursday.

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APIA said the European Commission’s decision to request Romania to change its legislation in the sector is “strange”, as the Commission already agreed to the existing form of the tax.

“I find this reaction to be unusual, at least strange,” APIA head Ernest Popovici said.

Popovici said many European states decided to apply bailout schemes to protect their local car industry and some of them implemented harsher taxes than Romania.

He mentioned APIA will study the Commission’s letter to see the reasons why the European body launched an infringement procedure against Romania.

“One thing is clear – any amendment to the law will turn an entire system upside down,” Popovici said.

The European Commission on Thursday launched the infringement procedure against Romania for breaching EU legislation in the auto industry. The EC launched its first stage of the procedure: the formal notification letter.

EC said Romania’s pollution tax on cars, while protecting the local industry, might discriminate against used cars brought from other Member States.

Romania has two months to produce a “satisfactory response” before the EC can proceed with the second stage of the infringement procedure and subsequently bring the case before the European Court of Justice.

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