Romania's Environment Ministry could increase the car pollution tax from next year, justified by the requirement to tax Euro 5 cars, which are exempt until 2011, according to minister Laszlo Borbely.

The ministry suggested that a car using a 1,100 cc Euro 5 engine, currently exempt, be taxed EUR 116, if it is new, or EUR 91, if it is two years old. The owner of a two-year old Euro 5 car using a 2,000 cc engine will have to pay a registration tax of EUR 507 as of 2011, while the tax for an old car with a 3,000 cc Euro 5 engine will be EUR 1,541. The Government will make the final decision on whether to raise of not the car taxes.

For Euro 4 cars, the Environment Ministry has proposed  a tax of EUR 483 for a one-year old car with a 1,400 cc engine; EUR 399 for a car with the same engine, but three years old; EUR 1,326 for a two-year old car with a 2,000 cc engine. The taxes on cars with Euro 3 engines will also be increased as of 2011: a car with a 1,400 cc engine will incur a tax of EUR 998 if it is seven years old, EUR 880 if it is eight years old and EUR 665 if it is ten years old.

Electric or hybrid cars are exempt from registration taxes and the Ministry  is working on introducing an incentive for producers of electric cars.

Mediafax