Wednesday, November 28, 2007

EU warns Romania to change legislation on car taxation

BRUSSELS (Thomson Financial) - The European Commission said it has sent Romania a "reasoned opinion", the final warning before taking the country to the European Court of Justice, asking it to change its legislation on car taxation.

The commission sent Romania its first warning in the spring, pointing out that its national rules on car registration tax were incompatible with EU rules.

The EU executive said Romania did not provide satisfactory answers to its concerns and has not modified its legislation.

Under Romanian law, car tax is not in line with the actual depreciation of similar cars registered on the domestic market. In fact, the tax is increased on the basis of the car''s age alone.
The commission is concerned that, as Romanian car registration tax is levied only once, imported used cars fall within the most heavily-taxed category.

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