Traiceanu said on Wednesday that the Executive was considering raising cassation indemnity for old cars, saying that it may reach to 1,000 euros. “We will talk to car manufacturers and see if this measure is useful. (…)Now it is 800 euros, and if it climbs to 1,000 euros, it will be a psychological threshold that would spur buyers more”, said the prime minister.

Romania’s decision to suspend car tax for new cars is still waiting for approval from European Commission.

European Commission called Romania’s first registration tax, introduced in the Fiscal Code in 2007, a breach of the country’s European Union accession treaty.

Meanwhile, Romanian authorities handled several talks with the European Commission over the calculation method used for first registration tax.

The latter review of first registration tax was made after the Deputy Chamber adopted, mid February, a simple motion of PD-L claiming the annulment of the tax.

The Government took notice on the provisions of the motion, and adopted this spring the current calculation method of the tax, through an Emergency Ordinance. The first registration tax was renamed as “pollution tax”, and it is effective as of July 2008.

Translated by Camelia Oancea