New Romanian Car Tax To Come Into Force On July 1, ’08

The Ministry published, Wednesday evening, the draft government ordinance on the changes to the car tax, which will be renamed "pollution tax for cars," as well as the calculation method and the new grids for paid sum establishment.

 

The tax is calculated through a formula that includes the Euro norms, engine cylinder capacity and the age of the car. For each of the five categories (non-euro to Euro 4) there are five sub-divisions, depending on capacity, for which the specific tax levels are indicated, expressed in euro/cubic centimeter. The sum resulting for each category is adjusted with a reduction percentage, which ranges from 0 to 95%, in direct ratio with the age of the car.

 

According to the draft ordinance, the reduction is set with respect for the age of the car, average yearly mileage, the technical state and the outfitting level of the car, mentioned in the methodological norms. The age of the car is calculated depending on the date of its first registration.

 

When the person requesting registration cannot prove the date of the first registration, the tax is calculated based on the elements of a similar vehicle with an age of up to one month.

 

The sum paid can be challenged when the person registering the car can prove that the car suffered decay greater than the one indicated in the fixed grid. The evaluation of decay will be performed with respect for the elements considered when the reduction is calculated.

 

When the car for which the tax was paid in Romania is later exported outside the European community or is transferred and registered to the territory of another EU state, the residual value of the tax is returned. The residual value of the tax is the tax calculated for a car with the same cylinder capacity and pollution norm, and with an age determined starting from the date of the first registration to the date of export or transfer.