Romania To Increase Car Pollution Tax By Up To 50% As Of Jan 1, 2011 – Minister

Borbely also said he hopes the emergency decree on the new car pollution tax will be finalized within two-three weeks. The minister stressed the car pollution tax will be hiked because Romania is not willing to spend 700 million lei (EUR1=RON4.3082) on scrapping used cars brought from countries eager to get rid of polluting clunkers. He added that whoever affords to bring polluting cars to Romania should be able to pay.

According to Borbely, a total 120,000 used cars, some of which older than ten years, have been brought to Romania over the past year.

Early November, Borbely announced the amounts suggested by his ministry for the car tax in 2011, which the Government will decide whether to approve. A car using a 1,100 cc Euro 5 engine, currently exempt, would be taxed EUR116, if it is new, or EUR91, if it is two years old. The owner of a two-year old Euro 5 car using a 2,000 cc engine will have to pay a registration tax of EUR507 as of 2011, while the tax for an old car with a 3,000 cc Euro 5 engine will be EUR1,541.

The ministry's proposals for taxes on Euro 4 cars are as follows: EUR483 for a one-year old car with a 1,400 cc engine; EUR399 for a car with the same engine, but three years old; EUR1,326 for a two-year old car with a 2,000 cc engine. The taxes on cars with Euro 3 engines will also be increased as of 2011: a car with a 1,400 cc engine will incur a tax of EUR998 if it is seven years old, EUR880 if it is eight years old and EUR665 if it is ten years old.

Borbely said at the time the Environment Ministry wants to support producers and buyers of electric or hybrid cars, so they are exempt from registration taxes.

Romania's Government decided in April this year to put together an inter-ministry workgroup to analyze possible changes to the country's car pollution tax. The car pollution tax was implemented by the Government in April 2008 and was calculated taking into account the cars' technical data and based upon the cars' carbon dioxide emissions.

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