Car Pollution Tax Suspended!

The Government has decided to suspend the car registration tax (also known as the pollution tax) for EURO4-compliant cars until the end of 2009. The tax is usually due upon registering a car with the police for the first time. According to Prime Minister Calin Popescu Tariceanu, the decision was made to avoid layoffs in the auto industry as a result of the global economic crisis.

"It"s not about protecting the industry, but protecting the jobs. I believe it is the Government"s obligation to protect jobs," said Tariceanu. The Government will therefore notify the European Commission of this decision and explain it as a measure to protect employment in the crisis-stricken industries. However, despite the latest statement that "it"s not about protecting the industry," Tariceanu on Monday said "Used car sales have killed Dacia"s sales and will also kill Ford"s sales."

He also said he had talked with President Traian Basescu about finding a solution to suspend the pollution tax. "During the meeting, the two officials shared a common concern with the fact that used car imports have affected sales of domestic cars," reads a press release from the Government. In turn, President Basescu said he agreed with the idea to suspend the pollution tax on long term. "I"m not saying whether it"s a good tax or a bad tax. I"m saying it"s necessary! Full stop!," said Basescu.

Also yesterday, PM Tariceanu announced that the Government had discussed a number of measures to apply the recently announced economic and employment growth plan. "We will not delay the measures to apply the economic and employment growth plan. The situation is not encouraging. There are risks of unemployment that we want to prevent. I want this plan to make Romania"s economy less vulnerable to such changes," he said.

Government representatives said the measures included changes in the Fiscal Code and Fiscal Procedure Code. The Government is also planning to stimulate employment by paying employers 1,000 EUR for each unemployed person they hire, on condition that the respective person has been unemployed for more than three months.