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| A CONTROVERSIAL TAX 21/02/2008 |
| (2008-02-21) |
| Last updated: 2008-02-22 14:53 EET |
Caught in the middle between the European Commission, public opinion and parliament, the Romanian government is trying to reach a compromise on the controversial first registration fee for cars. This how the new draft tax law is currently seen. Made public by the Government on Wednesday, the new draft stipulates that the tax will be calculated differently, depending on CO2 emissions.
Consequently, guided by the principle “the polluter pays” , the tax for Euro 4 and Euro 5 cars is lower, whereas the criteria taken into consideration for other cars – cylinder capacity, age and Euro catalyst - will not be changed, which means a high tax will still be paid. The government has underlined that the change - the third of its kind - meets the requirements set by the European Commission, which has frequently stood against the tax. In case the European Commission does not give green light to the new formula of calculating the tax, Romania runs the risk of being brought to the European Court of Justice.
It is worth mentioning that the new regulation sets a tax reduction quotient, proportional to the car’s age; provides for a system of reimbursing the residual tax, in case the car is sold in another EU member state; and includes a notification procedure. However, the new draft does not make reference to the restitution of the car, the government saying the tax has been collected so far based on the Fiscal Code, approved by parliament. It is interesting that the new draft was issued after parliament on Tuesday passed the motion entitled “Annul the first car registraiton fee”.
The Romanian parliament’s vote against the unpopular tax has been interpreted by Liberal Prime Minister Calin Popescu Tariceanu as the opposition’s attempt to attract new voters. However, irrespective of political preferences, the electorate is firmly opposed to the tax, whose absurdity is illustrated by the fact that for Euro 3 cars and below, the tax might exceed the price of the car on the market.
Strong public opinion has led to the development of an unprecedented campaign against the tax, entitled “The Tax ..Up against the wall”. No less than 120 thousand signatures have been collected so far. The list has been filed with the Petitions Committee of the European Parliament. Only time will tell what will happen to the already famous first car registration fee in Romania. We’ll find an answer in the more or less distant future.
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