Revised car pollution tax to drop in Romania for older cars, to support sale of newer cars

Romania will apply a revised car pollution tax on all cars with maximum eight seats. The new tax will take into account the full carbon dioxide emissions, not just 30 percent as it is now, and for non-euro, Euro 1 and Euro 2, the tax will drop from the current levels. The tax will be paid only once in the car’s life cycle, irrespective of how many times it changes owners.

The tax, called Environment stamp, came as a proposal from the Environment Ministry to the Government. “The intention is to apply the principle “the polluter pays”, but also to encourage the acquisition of less polluting cars. Now, for old and very old cars, an abnormal tax is being applied, which blocks the acquisition of less polluting cars,” said Environment Minister Rovana Plumb. The current tax also takes into account engine capacity, together with just 30 percent of the carbon dioxide emissions.

Lowering the tax for the non-euro, Euro 1 and Euro 2 cars with older technology is based on the idea that these cars will anyway continue to pollute for a shorter period of time until they go out of use. The new tax will be introduced only after a public debate.

Last year, the former Government decided to apply the tax for cars registered before 2007. The tax was paid by the buyers, at the first sale of the car. It was then called the ‘first sale tax’. However, as it was difficult to collect this tax, it was postponed and those who had paid it were to get their money back. The tax was suspended only until the beginning of 2013, which makes it currently valid, until a new tax is put in place.

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