Romania Poised to Collect €2.62 Billion After Constitutional Court Ruling Expected on Pollution Tax
BUCHAREST, Romania – Romania is preparing to request €2.62 billion in funds from the European Union contingent upon a Constitutional Court (CCR) ruling expected to validate a recently implemented pollution tax on older vehicles. Prime Minister Ilie Bolojan stated Friday that the tax package, currently under review by the CCR following previous challenges, forms the foundation of the nation’s budget for the coming year.
The December tax package introduces a system designed to incentivize newer, less polluting vehicles while penalizing owners of older cars. The legislation offers approximately a 20% discount when taxing new cars and imposes a penalty of up to 20% on vehicles deemed highly polluting due to their age. This milestone, according to Bolojan, is a prerequisite for submitting payment request number 4 to the EU.
Bolojan explained that the adoption of this taxation milestone is “a condition for the submission of this request number 4.” He anticipates that, should the CCR declare the package constitutional – a scenario he believes likely given that previously contested articles have been removed - Romania will be able to submit the request by the end of February and secure the crucial funding.
The initial passage of the tax package was delayed due to appeals to the CCR, which previously deemed an article related to ANAF hiring practices unconstitutional. Parliament subsequently removed the problematic article,and no other changes were made to the legislation. Bolojan emphasized this lack of further alteration strengthens the likelihood of a positive ruling.
“Regarding the fiscal package, we are in a situation where…this tax package is the basis of the budget for next year,” Bolojan said during a press conference. “Adopting it allows us to submit payment request number 4, which is worth 2.62 billion euros.” The collected revenue from the pollution tax is intended to support investments throughout the next year.