Romanian Car Taxes Might Be Hiked In 2011, Euro 5 Engines No Longer Exempt

In a press conference on Tuesday, Borbely announced the amounts suggested by ministry for the car tax in 2011, which the Government will decide whether to approve. A car using a 1,100 cc Euro 5 engine, currently exempt, would be taxed EUR116, if it is new, or EUR91, if it is two years old. The owner of a two-year old Euro 5 car using a 2,000 cc engine will have to pay a registration tax of EUR507 as of 2011, while the tax for an old car with a 3,000 cc Euro 5 engine will be EUR1,541.

The ministry’s proposals for taxes on Euro 4 cars are as follows: EUR483 for a one-year old car with a 1,400 cc engine; EUR399 for a car with the same engine, but three years old; EUR1,326 for a two-year old car with a 2,000 cc engine. The taxes on cars with Euro 3 engines will also be increased as of 2011: a car with a 1,400 cc engine will incur a tax of EUR998 if it is seven years old, EUR880 if it is eight years old and EUR665 if it is ten years old.

Borbely said the ministry wants to support producers and buyers of electric or hybrid cars, so they are exempt from registration taxes. „Plus, we’re working on introducing an incentive for producers of electric cars,” he said.

Last week, Borbely said the Government will not make significant changes to the vehicle pollution tax in 2011, but it will introduce a tax on Euro 5 vehicles, since only engines adhering to that standard would be produced.