Romania Government to approve new car registration tax on Wednesday

The Romanian Goverment may very well approve on Wednesday a memorandum regarding registration tax applied to second-hand cars, according to Government sources. The project seeks to reduce the tax proportionally with the age of the car. For new cars, the tax will be reduced by several percents while for the a 20 year-old used car that is purchased, the tax drops by 90%.

The Romanian Goverment may very well approve on Wednesday a memorandum regarding registration tax applied to second-hand cars, according to Government sources. The project seeks to reduce the tax proportionally with the age of the car. For new cars, the tax will be reduced by several percents while for the a 20 year-old used car that is purchased, the tax drops by 90%.

According to the sources within the government, the final proposal will soon be sent to Brussels. In March 2007, the European Commission started judicial procedures against the Romanian government for the first car registration tax introduced early last year.

The tax will be cut according to the age of the car, so for a 1 to 2 years old car, its owner will have to pay 15% less than the current tax, Informatia de Cluj daily informs.

Economy Minister Varujan Vosganian announced in an HotNews.ro – BBC interview in December the main principles that the new decision will envisage.

The European Commission launched the legal procedures against Romania in March 2007, due to the first car registration tax Romanian authorities insisted to introduce despite strong Brussels objections. Thus, according to EC procedures, the infringement procedures were launched and after half of year of talks, Brussels officials applied a new phase of the procedure, threatening to end it by suing the country at the European Court of Justice.