Car Tax Could Triple For New Cars Under New Calculation Method

Romania's much disputed car tax will nearly triple for new cars and will be lowered in direct ratio with the car's age for vehicles with the same cylinder capacity and emission standards, government sources told Mediafax Thursday.

The Romanian government decided to send the European Commission a new letter regarding its controversial car tax regime on Wednesday, presenting the final calculation method for the tax.
 
"The new principle we're introducing in the tax calculation method is that age equals depreciation for cars with similar engine capacities and emission standards," people close to the matter said.
 
Thus, if the tax for a new Euro 4 car with an engine capacity of 1,400-1,600 cubic centimeters is currently a little above EUR100, under the new calculation method, the tax increases to over EUR400. The tax is lowered in direct ratio with the car age, so that the same vehicle, but two years old, would be taxed 15% less.
 
Under the new calculation method, the highest car tax could reach some EUR5,500  for more than ten years old, non-Euro cars with engine capacities of over 3,000 cubic centimeters.
 
The cited sources added the numbers offered are not final and could see slight changes.
 
The tax was introduced early last year, when the elimination of excises for imported vehicles thinned the state budget. The tax was immediately frowned upon by the EU, which considered it discriminating against second-hand EU imported cars. The first registration tax, as it was called, was calculated depending on engine capacity, car age and level of emissions. 
 
The European Union has opened an infringement procedure on Romania for its car tax regime, and could take the matter up with the European Court of Justice.

Mediafax