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Romanian President Proposes Car Tax Exemption For New Cars To Overcome Crisis

Romanian President Traian Basescu said Monday after a visit to the plant of Dacia, the Romanian carmaking unit of France’s Renault, that a solution to the crisis that is affecting the local auto industry would be a temporary tax exemption for new cars.
Romanian President Proposes Car Tax Exemption For New Cars To Overcome Crisis
17 nov. 2008, 14:00, English

Basescu said the local auto market is “strongly affected by market realities", adding he discussed a set of measures to overcome the crisis.

He said measures would include a temporary exemption from the pollution tax for new cars, the continuation of the country’s car park renewal program, strict supervision of used car registrations and crediting Dacia’s suppliers.

Last week, Dacia general manager Francois Fourmont said sharp decreases in new car sales because of massive used car imports might force several of Dacia’s dealers and suppliers to scrap jobs or even drive them out of business if the situation worsens.

Dacia already halted production for four days late October and early November and announced plans to halt it again from November 20 to December 7, citing declining demand on local and international auto markets.

Also Monday, Basescu will visit state-owned chemical plant Oltchim Ramnicu Valcea, which said last week it would reduce activities by 20% in November and buy less raw material from its main supplier, oil and gas company Petrom, citing declining market demand.

The head of state also said he will visit the carmaking plant U.S. giant Ford owns in Craiova, southern Romania.