Used Car Imports Could Cost Romania Budget Revenues, Jobs – Automotive Assoc

"Risks entailed by massive used car imports are lower budget revenues on the lower collection of value added tax, fewer jobs, delays in new investments and discouraging prospects for other possible foreign investments,” Valmar said Tuesday at the Mediafax talks about Auto Industry conference.

A loss of 5% from the current workforce in the automotive industry would translate into 7,500 people fired, Valmar said.

He added other risks entailed by used car imports include tax evasion, increased pollution, damaged road infrastructure and lower traffic safety.

In the first half of the year, before the introduction of the pollution tax for cars, Romania imported 75,349 used cars, while in the third quarter, after the tax was introduced, the country imported 92,996 used cars.

Moreover, the age of the used car entering the country after the introduction of the new car tax increased considerably, as 4 to 10-year-old cars accounted for 64% of all used cars in the first half of the year and for 41% in the third quarter alone. Cars older than ten years accounted for 7% in the first half, but soared to 42% in the third quarter.

Most second hand cars came from Germany and France.