Romanian Govt Seeks To Postpone Tripled Car Tax

"The government is seeking in Wednesday’s cabinet meeting a legal solution to have the annexes which set the tripling of the car tax become effective as of Dec 15 or later, such as Jan 15, and pay back the money paid this week. The government needs to either adopt an emergency decree or a simple decree," people close to the matter told MEDIAFAX.

The government also wants to rephrase the stipulation on the suspension of the car tax, to clearly state the exemption is granted for new Euro 4 motor vehicles.

The sources said talks on the car tax are held between Prime Minister Calin Tariceanu, the finance and environment ministers and the government’s legal advisers.

The car tax tripled as of Monday, Dec 8, when the government decree setting the measure was published in the Official Gazette.

The decree stipulates tax exemptions between Dec 15, 2008 and Dec 31, 2009 for motor vehicles whose cylinder capacity doesn’t exceed 2,000 cubic centimeters and which are registered for the first time in Romania or other European Union member states. The decree, however, makes no reference to the Euro 4 norm criterion included in the draft decree.

Government spokeswoman Camelia Spataru told MEDIAFAX Tuesday evening that the tax exemption is granted for Euro 4 vehicles.