HIGH TAX FOR CHEAP CARS 15/12/2008 |
(2008-12-15) |
Last updated: 2008-12-16 20:37 EET |
As of Monday, Romanians who have bought second-hand cars from abroad will pay a pollution charge three times higher than before. The measure is laid down by a government emergency ordinance. The idea is to protect and support the domestic car industry, against the backdrop of a deepening financial and economic downturn. Dacia-Renault and Ford Romania car makers last week asked for state securities for loans from the European Investment Bank, while Dacia announced new redundancies and a temporary suspension of activity.
As of December 15, the pollution tax levied upon imported second-hand cars, Euro 4 -compliant cars included, will be three times higher. Moreover, Euro-4 compliant cars with engine capacity of up to 2,000 cubic centimeters, shall benefit from a one-year tax exemption (until December 31, 2009). The ordinance stipulates that Euro 5 and Euro 6 compliant cars, alongside electric and hybrid models, are tax exempt.
The new pollution tax, rather unclearly phrased and subject to various interpretations, triggered protests in several Romanian cities, with drivers opposing the high pollution tax which in some cases exceeds the vehicle purchase price. Car importers say the ordinance should not be enforced, because the European Commission bans all measures that favour local vehicle producers over importers.
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