Car tax – Economy minister calls proposal to cancel tax a "useful debate" yet a "futile procedure"
Romania's Chamber of Deputies today passed the proposal issued by the center-right wing Democrat Liberal Party (PD-L) to cancel the first-time car registration tax; the Economy Minister Varujan Vosganian commented the procedure was futile as the government was about to amend the tax anyway.
The proposal was voted with 158 votes in favor from a total of 265. Nevertheless, the government had already initiated the change of the car tax, Vosganian said.
"The debate was useful however the procedure was futile as the government will change the tax shortly," Vosganian concluded.
According to the Constitution, the Chamber of Deputies or the Senate can pass a motion regarding internal or external political issues. The regulation of the Chamber of Deputies stipulates that in case a motion passes, the decision is forwarded to the government which must take it into account.
Romania already exceeded by two weeks the last deadline to change the tax and avoid trial at the European Court of Justice. The Parliament must adopt as soon as possible a draft law to comply with the EU legislation, the European Commission transmitted last week.
The European Commission launched the infringement procedure in March last year after the tax entered into force on January 1. EC called Romania's first-time registration tax a breach of the country’s European Union accession treaty.
The body has asked the government to modify the tax and eliminate discrepancies in the way it is applied, as it exempts used cars originating from Romania and taxes those brought from abroad.
Although the bill to modify the tax was made public, the government had not yet adopted it, saying it needs to consult political parties first.
The new bill stipulates the car tax to be set in accordance with the age of the car, as lower taxes will be paid for old vehicles and a limit of 20 years will be established regarding the age of cars for which the tax is levied. The new taxation system also considers the pollution level so that the tax will triple for the new Euro 4 cars while for the 14-15-year-old Euro 1 cars it will be ten times smaller.
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The proposal was voted with 158 votes in favor from a total of 265. Nevertheless, the government had already initiated the change of the car tax, Vosganian said.
"The debate was useful however the procedure was futile as the government will change the tax shortly," Vosganian concluded.
According to the Constitution, the Chamber of Deputies or the Senate can pass a motion regarding internal or external political issues. The regulation of the Chamber of Deputies stipulates that in case a motion passes, the decision is forwarded to the government which must take it into account.
Romania already exceeded by two weeks the last deadline to change the tax and avoid trial at the European Court of Justice. The Parliament must adopt as soon as possible a draft law to comply with the EU legislation, the European Commission transmitted last week.
The European Commission launched the infringement procedure in March last year after the tax entered into force on January 1. EC called Romania's first-time registration tax a breach of the country’s European Union accession treaty.
The body has asked the government to modify the tax and eliminate discrepancies in the way it is applied, as it exempts used cars originating from Romania and taxes those brought from abroad.
Although the bill to modify the tax was made public, the government had not yet adopted it, saying it needs to consult political parties first.
The new bill stipulates the car tax to be set in accordance with the age of the car, as lower taxes will be paid for old vehicles and a limit of 20 years will be established regarding the age of cars for which the tax is levied. The new taxation system also considers the pollution level so that the tax will triple for the new Euro 4 cars while for the 14-15-year-old Euro 1 cars it will be ten times smaller.
NewsIn
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