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Draft low: Tax for hybrid cars to be reduced by 95 pc

The local tax charged by municipalities for hybrid cars will be reduced by 95 percent, according to a draft law of the Ministry of Finance (MFP). This year the hybrid car owners will pay a local tax of only 5 percent of the value of last year, according to the quoted document amending the Tax Code, launched in public debate by MFP, economica.net informs.

At this time, the local tax calculation does not take into account the type of car propulsion. The only criterion is the engine capacity, local tax being calculated by applying a fixed value in RON, every 200 cubic centimeters.

For low cylinder capacity, the fixed amount is small (RON 8 for engines under 1.6 liters), but for big engines the value is up to RON 290 for each 200 cubic centimeters (over 3 liter engines).

After MFP project will become a law, the local tax for a car with hybrid propulsion and with an classic 1.8 liters engine capacity, for example, drops from RON 162 to just RON 8. Tax reductions for hybrid cars were made in 2011 and 2012, when its value was cut by 50 percent and 95 percent respectively. Subsequently, these discounts were vanished from Tax Code.

There is no official statistics on the number of hybrid cars in Romania and official statements speak of figures ranging from a few thousand to 10,000 vehicles.

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