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Senate scraps car tax, passes refunds

The Senate plenum yesterday passed a draft amendment proposed by the Democratic Liberal Party (PD-L) stipulating the cancellation of the special tax charged on auto vehicles and return of the sums cashed already within 90 days since the date an application to this effect is submitted. According to Mediafax, the draft amendment to Law no 571/2003, the Fiscal Code, passed 45 votes by 6 with one abstention.

The Senate plenum also passed an amendment proposed by the Senate economic Commission under which the Ministry of Economy and Finane (MEF) shall refund the sums paid within 90 days since the date a relevant application is tendered. Thirty days after the law comes to force, MEF will also draft and put for approval by Government the methodological norms implementing the provisions. The proponents of the draft amendment say that the tax is at odds with Romania’s Treaty of Accession to the European Union, its level is ‘too high, making it an excessive fiscal burden,’ and ‘creating discriminatory treatment against competitors on the Romanian car market. The draft amendment proponents insist that the tax being abrogated does not create major budget imbalances, as the sum stipulated to be cashed this year comes to RON 600,800,000. The Government however rejected the amendment on grounds the ‘tax was the outcome of the excise system being eliminated and environmental protection measures.’ The Executive also said that according to the European Commission, Romania charges a second-hand car tax excessively higher than that levied by other member states, with the EC calling on Bucharest to replace the tax, and not eliminate. It is now up for the Chamber of Deputies, the decision-making house in this case, to vote on the issue. Sursa: http://www.nineoclock.ro

Tags: amendment draft car senate

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