The same balance system, provided by the Fiscal Procedure Code, will also be used when refunding the tax’s residual value, when the car is removed from the national car park, says the draft act on the norms for the application of the new tax system. The tax’s residual value is the amount payable for the car’s registration, as it is removed from the car park.
The new vehicle pollution tax law lowers the rate by as much as 25% and allows car owners who paid a higher tax after July 1, 2008 to request a refund of the difference. Their request will be processed within 45 days, or longer, if additional information is required.
According to the draft, fiscal authorities will check whether the car owner has unpaid debts to the budget and reduce the value of the refund by the value of the debts.
The Government expects the new tax system to generate income of 336 million lei (EUR77 million), by taxing vehicles registered before January 2007 and sold after the new law enters force, and to cost only RON240 million in refunds.
The tax rate will be determined according to the engine’s type and size, CO2 emissions and vehicle depreciation, the latter determined by considering the car’s general condition (signs of corrosion, repainting, condition of the seats and dash), standard features (AC, ABS, airbags) and age.
The pollution tax will not be charged for vehicles with two or three wheels, farming or foresting tractors, or vehicles that are temporarily registered in Romania, with a view to be removed from the national car park and registered in another state.
The new law eliminates the discrimination mentioned by two rulings of the Court of Justice of the EU, which said the taxation system provided by Ordinance 50/2008 may cause indirect discrimination through its effects – by discouraging imports of vehicles. (EUR1=RON4.3625)