Sunday, March 25, 2007

Romania to keep old car taxation

Romania's Finance Minister said today he plans to maintain a car registration tax which is subject to legal action by the European Union over concerns the tax is discriminatory.

The EU, which Romania joined in January, launched legal action against the new member state and Malta on Wednesday, saying their registration taxes discriminate against second-hand cars imported from other countries.

"The tax will remain in force. The finance ministry will send a letter to the government, which will make a decision," Sebastian Vladescu was quoted as saying by local Rompres agency. The minister did not elaborate.

The EU's three-stage legal action process starts with a letter of formal notice and ends up in the European Court of Justice unless Romania changes its rules.

Romanian authorities say the tax, which can reach €7,000 for a six-year-old car, is meant to deter consumers from buying old cars that tend to pollute more than newer vehicles.


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