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August 7, 2022

Govt. considers charging car pollution tax upon first sale

The Government is considering levying a 30 per cent discount tax on the first sale of motor vehicles that had entered Romania before July 1, 2008, and money returns to car owners in payment instalments over several years, to avoid paying back a total amount of EUR 750 M, Mediafax reports a government document as saying. Converting the pollution tax into an annual tax charged to all motor vehicles owners, separate from the property tax, is another alternative taken into account.

The current auto tax system will be amended, after the Court of Justice of the European Communities, answering a request from a Romanian court, said that the first matriculation tax infringes on the European Union legislation, as it creates a disadvantage upon the sale in Romania of second-hand cars brought into the country from abroad. The Court’s point of view was conveyed over a trial wherein a Romanian who purchased a second-hand car from Germany in July 2008 and paid the pollution tax when it registered the car in Romania, challenged in court the tax only applying to second-hand cars imported from other states, yet not to the second-hand vehicles already registered in Romania and resold.

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