Romania to keep import tax on second-hand cars despite EU procedure

Romania to keep import tax on second-hand cars despite EU procedure

	Published : Mon, 26 Mar 2007 12:40 By : Agencies Print this Story

BUCHAREST (AFX) - Romanian Prime Minister Calin Tariceanu said his country will retain its import tax on imported second-hand cars, in response to the infraction procedure launched by the EU Commission last week.

'As prime minister I tell you clearly: I will not give up this tax,' Tariceanu said at a meeting with the country's mayors.

The prime minister said the tax was an environmental protection measure, but also a social measure, so that the 'tens of thousands of Romanians who work in the automobile industry keep their jobs.'

'If we allow all Europe's second-hand cars to enter Romania without any obstacle, you can be sure that these Romanians will lose their jobs,' Tariceanu said.

'We can find other solutions with the European Commission,' he said. 'If they want to sell cars on the Romanian market, any carmakers can come and invest here, build and create jobs here, and we can sell these cars.'

Last Wednesday, the EU Commission launched infraction proceedings against Romania and Malta, asking them to amend their legislation concerning taxes on imported second-hand vehicles.

The commission said the legislation on car registration taxes in Romania and Malta creates 'discrimination regarding imported second-hand vehicles'. It has therefore decided to send letters giving notice to the two countries, the first stage of the infraction procedure.

Romania and Malta have two months to respond.

Under the European Court of Justice's legislation, an EU member state has the right to levy a tax on imported second-hand vehicles from other member states, but this tax should not be higher than that levied on the same products produced domestically.

Under the terms of a Romanian law which came into effect at the beginning of 2007, imported second-hand cars are taxed more heavily than cars registered in Romania.

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