The rationale behind the government’s downward forecast is that the 25% cut in the car pollution tax and the suspension of the tax on the first sale of cars will lower revenues from pollution tax to the state budget.
The projection of revenues estimated to be cashed from the car pollution tax was included in the Environment Fund’s budget approved in government’s Tuesday meeting. Estimated revenues from the car tax amount to RON1.8 billion.
In January 2012, the Government decided the car pollution tax, charged on the first sale of cars registered before 2007, would be suspended until next year, with a refund offered to car owners who have already paid it. The Environment Fund’s budget lost RON336 million in revenues through the suspension of the car tax and RON240 million through the 25% tax cut.
Under the new law on the car pollution tax, the tax is charged to the buyer for vehicles registered before 2007, when first transferring the property rights. The new tax system is in effect since January 13.
As a consequence of numerous protests countrywide, with the elimination of the car tax among demonstrators’ demands, the ruling coalition decided to suspend the tax until January 1, 2013, arguing that used car owners need additional time to sell their vehicles. The Government also decided that people who had already paid the tax will get a refund by writing a request to the fiscal authority. (EUR1=RON4.3537)