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Romanian PM and President met to discuss about the anti-crisis plan of the government and the car tax

Romanian President Traian Basescu and PM Calin Popescu Tariceanu discussed on Wednesday about the car tax and the anti-crisis plan put forward by the government. The two political leaders want to seek solutions to temporarily suspend the environment tax for three to six months. The meeting took place ahead of the Government meeting scheduled to start later in the day, and ended after nearly 45 minutes.

Early this week, Prime Minister Tariceanu voiced agreement with President Basescu's suggestion that the tax on new motor vehicles be suspended for a definite time, saying that the measure will be approved as soon as possible.

'I have seen President Basescu's statements after his visit to the Dacia automobile factory and I am glad we have a similar approach of this theme. We discussed the issue on the phone, but we did not agree on this measure on the phone. The most efficient measure would be to discard imports by cancelling the tax on new motor vehicles. This will virtually mean that we are stymieing the imports of used cars for a limited time by keeping taxes only on them. We will see how the market reacts and we may lengthen the measure for three more months, and we see what can be done or we will work out another solution,' said Tariceanu.

He added that the imports of used cars in Romania will have a negative impact on domestic output, because they 'killed' the sales of Dacia and even of Ford.'You have to understand that unbridled imports of used cars is endangering the Romanian industry. The European countries where such imports originate are very happy to see the cars leave and make room for the sales of new ones there. They get rid of all the junk cars that invade Romania, and Romania becomes a dumping yard for used cars, which sooner or later will pack up because they will be unable to run any more,' said Tariceanu.

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