The new version of the car registration tax stipulates its value will drop as the car gets older. Dacia sales could also decrease if the proposal of the Association of Car Producers and Importers to replace 100,000 old vehicles fails to be approved, Stroe added.

The company sold 102,062 cars last year, 5.2 percent less than the 107,669 units sold in 2006 while in 2005 the carmaker sold 113,276 units. Dacia sold 230,473 units worldwide in 2007, a 17.4 percent increase against the 196,378 units sold in 2006. Renault group’s worldwide sales rose 2.2 percent, to 2.487 million units.

EC last year decided to start the second stage of the infringement procedure against Romania because the answer given by Romanian authorities on the matter was unsatisfactory. The commission gave authorities two months to change legislation. EC called Romania's first-time registration tax a breach of the country’s European Union accession treaty. The body has asked the government to modify the tax and eliminate discrepancies in the way it is applied, as it exempts used cars originating from Romania and taxes those brought from abroad.

The first-time registration tax, applied since January 1, 2007 is calculated on three variables and ranges from 68 euros for new cars to 8,586 euros for certain cars more than six years old.

Source: NewsIn