Romanian Econ Fin Min Says Car Tax Talks Near Endgame

"We have acknowledged the Commission request to make the tax level compatible with the market value," Vosganian said.

 

He stated that the Ministry of Environment will collect the tax.

Romania’s much disputed car tax will nearly triple for new cars and will be lowered in direct ratio with the car’s age for vehicles with the same cylinder capacity and emission standards, government sources told MEDIAFAX last week.

 

Also last week, the government decided to send the European Commission a new letter regarding its controversial car tax regime, presenting the final calculation method for the tax.

 

Under the new calculation method, the highest car tax could reach some EUR5,500  for more than ten years old, non-Euro cars with engine capacities of over 3,000 cubic centimeters.

 

The tax was introduced early last year, when the elimination of excises for imported vehicles thinned the state budget. The tax was immediately frowned upon by the EU, which considered it discriminating against second-hand EU imported cars. The first registration tax, as it was called, was 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.