Romanian PM Proposes One Third Of Car Tax Revenue For Environmental Projs

He asked the two ministers to draft an ordinance amending environmental laws, stipulating about one third of the “car pollution tax” revenue going to the budget of the Environment Ministry for pollution reduction projects, ministry sources told MEDIAFAX.

The exact percentage of the tax revenue to be transferred for environmental projects will be set in the upcoming period.

Tariceanu said the money should not be transferred directly to the Environment Fund, as the European Union does not agree with special funds. He also said the tax should be calculated depending on the car’s level of emissions, if it is to be considered a measure against pollution.

The first registration tax for cars was introduced early this year, with the elimination of excises on imported cars and cars bought off the domestic market. The tax is calculated depending on engine capacity, car age and level of emissions.

The European Union has opened an infringement procedure on Romania for its car tax regime, and could take the matter up with the European Court of Justice, feeling the tax is unjustified.