Romania urgently needs an efficient car tax strategy to boost its car fleet renewal after the authorities removed the environment tax and the used car imports have exploded, according to the consultancy firm PwC.

A working group within the Environment Ministry has come up with two possibilities to apply the car tax. The authorities could charge the tax only once or they could ask for an annual tax, Environment Fund Administration president Cornel Brezuica said yesterday. PwC and car industry representatives are also part of this working group.

Over 337,000 used cars were registered in Romania in the first eight months of this year, up 110% year-on-year.

“While other countries are preparing to switch to electric cars, Romania is invaded by old cars,” according to PwC.

Romanian authorities removed the environment tax in February this year.

editor@romania-insider.com