Bucharest Court Of Appeals To Try NGO Suit On Car Tax On Jan 20, ‘09

The Bucharest Court of Appeals set the debate on the annulment and on the suspension of the Government Emergency Ordinance tripling the tax on used cars for January 20, after rejecting the request filed by non-government organization Civil Society Commissariat to solve the case sooner.

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Thursday, the legal advisers of the Government were absent, and the Civil Society Commissariat representatives demanded the suspension of the Government Emergency Ordinance and a sooner trial date on the legality of the normative act, saying the tax ought to be annulled as soon as possible so as not to create damage to the citizens.

The Court initially set the trial date for January 20, 2009.

The Romanian NGO said it filed legal action against the government following the many complaints it received and the “state of social unrest caused by the enforcement of G.O. 208/2008.”

The NGO said the government breached article 95 of the Treaty establishing the European Economic Community (EEC) and articles 16, 21 and 44 of the Romania Constitution, as well as EU legislation, as the taxes levied based on Government Emergency Ordinance 2087 "exceed the residual value of used cars."

In addition, the organization requested the European Commission issue an official standpoint on the matter.

"Government Emergency Ordinance 208/2008 breaches the constitutional principle to the detriment of traders and ordinary people who can only afford to buy used cars, compared to those who buy new cars," the organization said.

The organization also urged the Bucharest Court of Appeals to ascertain the unconstitutionality of Government Emergency Ordinance 208/2008, implicitly the illegality of this decree, stressing it goes against the community acquis and the treaties ratified by Romania, which are way above the government decree.

Early December, the Romanian government said will triple a registration tax on used cars to boost new car sales and aid the local auto industry.

On Thursday, over 800 people are expected to join a protest action in Bucharest against the triple car tax.

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