A group of dozens of MPs want to amend the Fiscal Code law so as to provide up to 90% lower taxes for the owners of cars with big engines, such as SUVs and high-powered limousines, reports local Adevarul.

Meanwhile, the taxes due by Romanians owning cars with engines of up to 1,600 cubic centimeters would increase by about 50%.

The initiators of the legislative proposal say that lowering the level of car taxation will convince Romanians to no longer register their cars in Bulgaria, where the taxes are lower. Moreover, the car insurers would also benefit from this change, as the damage recovery process is much more difficult when the vehicles involved in the accident are not registered in Romania.

Basically, the legislative proposal also changes the way the tax is calculated. At present, the owner of a car with an engine of 1,600 cubic centimeters pays a tax of RON 64 (EUR 13.8). However, if the legislative proposal passes, the same person will pay a tax of RON 96 (EUR 20.7).

Meanwhile, the owner of a car with an engine of 3,598 cubic centimeters will pay a lower tax if the law changes. At present, the tax for such a car amounts to RON 5,220 (some EUR 1,120) per year. However, it will drop to only RON 432 (EUR 93) if the legislative proposal is adopted.

Irina Marica, irina.marica@romania-insider.com