Romanian Govt Changes Car Tax Calculation Method Again

The draft ordinance regarding Romania’s car tax will be amended, introducing new rules to correlate the level of the tax with that of polluting emissions, after the country consults with the European Commission, Prime Minister Tariceanu said.

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Tariceanu said that the amendments to the car tax were decided in the Thursday discussions with representatives of non-governmental environment organizations.

“The tax will reflect in a simple formula, correlating the level of the tax with that of CO2 emissions. The more you threaten the environment by polluting, the more you pay,” Tariceanu said.

The official said regarding the current perception with respect to the car tax that ‘the tax was not intended to bring more money to the state budget, but form a barrier against used car imports.”

The car tax is currently calculated through a formula that includes the Euro norms, engine cylinder capacity and the age of the car. For each of the five categories (non-euro to Euro 4) there are five sub-divisions, depending on capacity, for which the specific tax levels are indicated, expressed in euro/cubic centimeter. The sum resulting for each category is adjusted with a reduction percentage, which ranges from 0 to 95%, in direct ratio with the age of the car.

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