Government cuts the car tax by one third

The Romanian government decided to reduce the first car registration tax by one third, PM Emil Boc has announced. The emergency ordinance comes into force as soon as it is published in the Official Gazette. Moreover, Romanians who bought cars before December 15, 2008 but did not managed to finish registration procedures will pay the tax according to norms set up in July 2008.

Boc declared that the ordinance is meant to support the national car industry. Boc said that those who bought a car before December 15 and paid for the registration will receive the difference back while those who bought a car before December 15 and did not register the car will pay the tax as ruled by the law passed in July 2008.

Representatives of Romanian car maker Dacia and of importers of new cars urged the government repeatedly that a reduction of the car tax for used cars would have disastrous effects on the local industry and that Romania will become a graveyard of used Western cars.