Government To Increase Car Registration Tax To Rescue Domestic Industry

CĂTĂLIN DEACU
Ziarul BURSA #English Section / 5 decembrie 2008

Recycling premium could be increased to 1,000 EUR

The Government could increase the registration tax for used cars, Prime Minister Calin Popescu Tariceanu said during a visit to a car test centre in Titu yesterday. According to him, the Cabinet could discuss this matter today. "Unrestricted imports of used cars will jeopardize or even kill jobs in the Romanian industry. Tomorrow (i.e. Thursday), the Cabinet will discuss the matter of increasing the pollution tax for used cars," he said.

The remark came only two weeks after the Government announcement that the car registration tax would be suspended for EURO4-compliant new cars until 31 December 2009. This measure will be effective as of 15 December 2008. In the meantime, the Government is waiting for the European Commission"s view on the idea.

Tariceanu said the Commission had not yet replied on the proposal to suspend the tax for new cars, but he emphasized that the answer would not be "a condition." According to him, these two fiscal measures should support Romania"s car industry, which has been severely affected by the global crisis.

Tariceanu also announced that the recycling premium paid for old cars could be increased from 800 EUR to 1,000 EUR to exceed "a psychological threshold" that could encourage owners of very old cars to have them recycled.

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