European Commission Urges Romania To Back Car Taxpayers In Taking Legal Actions

The representatives of the Romanian authorities and the European Commission Tax Department met again on November 8 for a new round of talks on the car tax.

The European experts said that the infringement procedure initiated by the Commission this year in March can only be suspended if Romania submits a draft law amending the car tax in accordance with the European provisions, sources close to the matter told MEDIAFAX.

The letter which the Commission sent to Romania late March 2007 said that even if a taxpayer disagrees with the fiscal authorities on the evaluation process of a used car’s actual depreciation, the Romanian legislation does not allow taxpayers to appeal the result of the evaluation established in conformity with fixed depreciation grids.

The European Court of Justice backs the right of EU states to use fixed grids to calculate a car’s actual depreciation as to avoid excessive administrative procedures.

Romanian authorities introduced early this year a tax on cars’ first registration, saying they want to limit the import of polluting cars after Romania joined the EU on January 1.