Romania’s Govt Says Car Owners May Recover Part Of The Car Tax

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“The Romanian state will not introduce administrative barriers to try and forbid car owners from exercising their legal rights, if they wish to recover part of the first registration tax,” said Ciocanea.

The changes in the Romanian car registration tax will come into force on July 1, 2008.

Last week, the ministry of economy and finance published the draft government ordinance on the changes to the car tax, which will be renamed "pollution tax for cars," as well as the calculation method and the new grids for paid sum establishment.

The tax is thus calculated through a formula that includes the Euro norms, engine cylinder capacity and the age of the car. For each of the five categories (non-euro to Euro 4) there are five sub-divisions, depending on capacity, for which the specific tax levels are indicated, expressed in euro/cubic centimeter. The sum resulting for each category is adjusted with a reduction percentage, which ranges from 0 to 95%, in direct ratio with the age of the car.

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According to the draft ordinance, the reduction is set with respect for the age of the car, average yearly mileage, the technical state and the outfitting level of the car, mentioned in the methodological norms. The age of the car is calculated depending on the date of its first registration.

When the person requesting registration cannot prove the date of the first registration, the tax is calculated based on the elements of a similar vehicle with an age of up to one month.

When the person requesting registration cannot prove the date of the first registration, the tax is calculated based on the elements of a similar vehicle with an age of up to one month.

The sums collected will go from the state budget to the Environment Fund.