Car registration tax, one-year suspension for new Euro 4 cars

The Government decided to suspend during December 1, 2008 and December 31, 2009 interval, the car registration tax for new Euro 4 cars that don’t exceed 2000 cc capacity, said the Prime Minister of Romania, Calin Popescu Tariceanu, adding that CE would not dispute this decision, according to preliminary talks.

Head of the Executive said during the yesterday’s meeting he would submit to European Commission a notification to explain the Government’s decision, justified mainly by the need of keeping the jobs.
First registration tax, introduced in the Fiscal Code at the beginning of last year, turned in March 2007, the object of a breach of Treaty of Accession to European Union.

Meanwhile, Romanian authorities held several talks with the European Commission for the European body to accept the calculation method for the tax.

Premiums for social insurances (CAS) will be reduced in the second half of 2009 by 2%, from 39.5% to 37.5%, the Government said on Wednesday.

“CAS will be reduced both for employee and for employer. We are now discussing with Ministry of Labor, in order to see what are the sections that will be reduced. The measure will be effective only after July 1, 2009, said the Minister of Finance, Varujan Vosganian.

5% lower taxes in 2009

Population, companies and natural persons will pay 5% lower taxes as of January 1, 2009 if the taxes are paid ten days ahead of the previously set date, according to an emergency ordinance passed yesterday by the Government.

Modification of the banking fees, banned

Modification of the fees established in the contract for a banking loan and implementation of new fees during the contract, without the agreement of the consumer is prohibited, and the modification of the variable interest will be made according to the benchmark indices of the market, the Government announced.

No more taxes at time deposits

The Government also decided that natural persons should not pay the 16% tax on interests for time deposits, as of January 1, the Prime Minister announced.

The Executive said it will enforce a reduced VAT share, of 5% from the price of housing units that cover less than 120 sqm and whose value does not exceed 380,000 lei.

The Government will also allot 1,000 euros conversed in lei for companies that hire persons unemployed for three months, with the condition to keep the employee for three years.

Translated by Camelia Oancea