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| Road Traffic, Between Taxes and Safety |
| (2011-11-04) |
| Last updated: 2011-11-07 14:11 EET |
Romanian Environment Minister Laszlo Borbely expressed his hopes that the new car pollution bill would be pushed into law by the end of the month. The tax will see a 25% slash, while car owners who have already paid the tax will be able to apply for a refund of the payment difference, minister Borbely added.
The slash follows after a ruling of the European Court of Justice in Luxembourg, demanding the tax should be cut to one third of its present value, in order to be in line with EU law. The Romanian Government had previously asked the European Court to limit the effects of the ruling in time. The court overruled the bid, claiming Romania failed to supply evidence of serious economic difficulties should the tax not be cashed in.
EU magistrates explained that such a regulation discourages the import and placing in circulation of second-hand vehicles purchased in other EU member states. The decision follows a complaint filed by a Romanian citizen, who was dissatisfied with having to pay too high a first car registration tax. The buyer considered the tax to be contrary to EU regulations, arguing it was being levied only on second-hand vehicles imported into Romania from other member states, and not charged on similar vehicles already registered in Romania when resold as second-hand vehicles.
The first car registration tax came into effect in 2007, and was aimed at putting an end to the growing number of second-hand car imports that threatened to transform Romania into Europe’s scrap yard. The draft law was shrouded in controversy ever since it was steered into Parliament, with many car owners voicing their criticism in court.
The Bucharest authorities are equally blamed for playing with the fire, given the regulation they backed was always known to be contrary to EU law. Furthermore, the first car registration tax was renamed into pollution tax shortly after the EU threatened to launch infringement procedures against Romania, while the way it was calculated underwent several changes.
On the other hand, the cash injection from car owners has not translated into safer and more secure roads, as the authorities promised. Romania has only recently managed to steer clear of the bottom list of countries in terms of road traffic safety, and climbed several positions half-through the standings at EU level.
In 2008, the EU issued a warning against Romania regarding its precarious road traffic safety, which was the cause of a large number of accidents, many of which resulted in the loss of human lives.
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