Automobile Dacia Says Romania Should Replace Car Tax With Lower Environ Tax

Automobile Dacia, the Romanian unit of French carmaker Renault, on Tuesday recommended the executive to replace the country's controversial tax on car registration with a lower environment tax, Automobile Dacia general manager Francois Fourmont said.

"It goes without saying that Romania must comply with the European norms. This is why we wish to present the government and all players on the Romanian political scene three propositions: replacing the current tax with an environment one; speeding the renewal of the country's car fleet or amending the current tax so that it observes European Commission recommendations regarding time depreciation," Fourmont said.

He said the possible environment tax should be based on pollution levels and on the cylindrical capacities of the vehicles. 

Fourmont said the cancellation of the first registration tax will cause a 50% drop in Automobile Dacia's sales in Romania, as well as several thousands layoffs.

The company officials estimate Dacia will manufacture some 350,000 units in 2008, out of which 120,000 are meant for the Romanian market.

Mediafax