Romania To Move On Car Tax Bill After Jan 15 – Environ Min

Romania might make a decision regarding the tax on car’s first registration after January 15, pending a thorough analysis from ministries of environment, finance and transportation, Environment Minister Nicolae Nemirschi said Tuesday.

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The car tax could be lower in value at the time of vehicle registration and later included in the annual tax paid by owners and calculated in ratio with the vehicle’s pollution standards, according to one of the variants the government is considering in a move to change the car tax regime.

Nemirschi presented several variants to change the car tax regime in a press conference Monday and said a decision will be made after the government analyzes the propositions and after consultations with relevant European institutions.

He said one option would be to suspend the decree the former liberal government passed in December and go back to the tax values charged in July.

The minister presented another variant, where the registration tax would be lowered, but vehicle owners would pay an annual tax calculated in ratio to the car’s pollution standards.

Nemirschi highlighted a decision would be mad after a series of talks and analyses at the level of the government.

"The response of the Finance Ministry is important. An analysis in the government meeting and the European model to be decided are also very important,” Nemirschi said, adding European institutions plan to unify principles for the application of car taxation in all the 16 EU member states that introduced such a tax.

Romania’s former liberal government decided in April to introduce the pollution tax for cars, calculated depending on the technical data of each car, based on carbon dioxide emissions, which replaced as of July 1, 2008, the tax for the first registration of cars which was then effective.

Amendments to the car tax brought a fall in the number of new cars, and boosted used car imports.

On the backdrop of the increase in the number of imported second-hand cars, the government decided via an emergency decree in December to triple the car tax for used cars, and to suspend it for new cars with Euro 4 engines of up to 2,000 cubic centimeters, registered or the first time in Romania and the European Union.

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