Romanian Econ Fin Ministry Publishes New Car Tax Norms

The procedures mentioned in the norms, which will be applied starting July 1, 2008, confirm the information, presented by MEDIAFAX last week, on the calculation of the car tax and the refund of the difference between the sum paid and the newly calculated sum, in accordance with the Fiscal Code.

According to the norms, the pollution tax will be calculated through a formula that includes the quotients set with respect for the engine’s degree of pollution (Euro norms) and carbon dioxide emissions, while the sum resulting for each category will be adjusted by a deduction calculated with respect for the car’s age, the general technical situation, the level of outfitting and the average yearly mileage, with a standard number of kilometers for each type of car.

People buying cars starting Jul 1, when the tax takes effect, will benefit from additional discounts from those already decided in the ordinance introducing the tax, calculated considering the car’s general technical state, equipments and age.

Depreciation elements will be assessed by the Romanian Automotive Registry, and buyers discontent with the level of the pollution tax may contest it by appealing to an authorized expert within the Technical Experts’ Body.

The government will refund the difference between the former tax on the first registration of cars and the new pollution tax within 45 days of applicants’ requests.

Vehicle owners may ask the fiscal administration to refund the tax difference if they consider the tax paid in Jan 1, 2007 – Jun 30, 2008 is higher than the pollution tax calculated in Romanian lei at the indicative exchange rate at the time of vehicle registration in Romania.

Vehicle owners must attach to their refund application the receipt attesting the payment of the car tax and copies of the identity card and vehicle’s registration. The same documents are required when vehicles are leasing-acquired.

"Upon receiving the refund application, the fiscal body will ask the state treasury in writing to confirm that the applicant has indeed paid the car tax and to provide data on any overdue fiscal obligations the applicant has. If the applicant has dues to the state, the refund will subtract those obligations,” sources within the Ministry of Economy and Finance told MEDIAFAX.

The procedure to retain overdue fiscal obligations from the car tax refund has been stipulated in the norms for the enforcement of the ordinance introducing the pollution tax for cars.