Brussels, 11/04/2011 (Agence Europe) - The pollution tax levied in Romania from 1 July 2008 on vehicles on their first registration is contrary to EU law in that, as a result of its effects, it indirectly discourages the import and placing in circulation of second-hand vehicles purchased in other member states without discouraging the purchase of second-hand vehicles of the same age and state of repair on the national market.
In response to a question referred for a preliminary ruling by the Sibiu District Court (Romania) in Case C-402/09, the Court sets out in a judgment delivered on 7 April what constitutes direct and indirect discrimination with regard to imported second-hand vehicles. The Court acknowledges immediately that there is no direct discrimination in the tax at issue, nor does the legislation make any distinction between vehicles according to where they come from, or between the owners of the said vehicles according to their nationality. The tax is due no matter the nationality of the owner of the vehicle, the state in which the vehicle was made or whether it was bought on the national market or imported.
However, the tax is indirectly discriminatory because of its effects. The Court found that the tax is neutral in terms of competition between imported second-hand vehicles and similar second-hand vehicles, previously registered in Romania and subject to the tax at that registration. The tax is discriminatory towards imported vehicles when these are in competition with similar second-hand vehicles which have already been registered in Romania before the tax came into force on 1 July 2008. In these circumstances, a tax, which may be of the order of 30% of the market value of the vehicle, is levied on imported second-hand vehicles while similar vehicles, offered for sale on the domestic second-hand vehicle market are not burdened with such a tax charge. The Romanian legislation, then, has the effect of discouraging the import and placing in circulation in Romania of second-hand vehicles purchased in other member states. (F.G./transl.rt)