The Government passed yesterday night the plan to fight the crisis, which sets forth a cut of CAS, 5% lower taxes in 2009, and a reduced VAT share, of 5% for living facilities. In addition, the Executive suspended the car registration tax for new Euro 4 cars, with a capacity below 2000 cc.

Car registration tax, one-year suspension for new Euro 4 cars

The Government decided to suspend during December 1, 2008 and December 31, 2009 interval, the car registration tax for new Euro 4 cars that don’t exceed 2000 cc capacity, said the Prime Minister of Romania, Calin Popescu Tariceanu, adding that CE would not dispute this decision, according to preliminary talks.

Head of the Executive said during the yesterday’s meeting he would submit to European Commission a notification to explain the Government’s decision, justified mainly by the need of keeping the jobs.

First registration tax, introduced in the Fiscal Code at the beginning of last year, turned in March 2007, the object of a breach of Treaty of Accession to European Union.

Meanwhile, Romanian authorities held several talks with the European Commission for the European body to accept the calculation method for the tax.

Premiums for social insurances (CAS) will be reduced in the second half of 2009 by 2%, from 39.5% to 37.5%, the Government said on Wednesday.

“CAS will be reduced both for employee and for employer. We are now discussing with Ministry of Labor, in order to see what are the sections that will be reduced. The measure will be effective only after July 1, 2009, said the Minister of Finance, Varujan Vosganian.

5% lower taxes in 2009

Population, companies and natural persons will pay 5% lower taxes as of January 1, 2009 if the taxes are paid ten days ahead of the previously set date, according to an emergency ordinance passed yesterday by the Government. @