Companies in Romania will be able to deduct their expenses on oil and gas for the cars used for transport, as well as the VAT for car purchases, but only within the 50 percent limiting, according to a draft of the 2012 budget.

This could trigger companies reshaping their car fleets and could fuel new sales for the car industry in Romania.

The Government decided to cancel the right to deduct VAT on car and gas purchases in 2009. The car market has continuously dropped since 2008. Car sales in Romania reached 119,000 units last year, down 19 percent on the same period of 2009.

editor@romania-insider.com