In the context of the commitments made through Romania’s National Recovery and Resilience Plan (PNRR), Romania is preparing to reintroduce a car tax for polluting vehicles. The Minister of Investments and European Projects, Marcel Boloș, announced that the measure will have a significant impact on the more than 8 million means of transportation registered in the country.

The implementation of the new tax is scheduled for January 1, 2026. The Minister of Finance, Tánczos Barna, confirmed that during 2025, a legislative package aimed at reducing pollution in the transport sector will be developed, following consultations with the Ministry of Transport, local authorities, automotive industry representatives, and environmental protection organizations.

Purpose and mechanism of the tax

The main objective of this tax is to stimulate the use of less polluting vehicles and to reduce carbon emissions. The measure is also motivated by the need to meet the environmental targets set through the PNRR and to avoid losing European funds allocated for the green transition.

The car tax will most likely be structured according to the following criteria:

• Euro pollution standard: Vehicles that comply with older standards (Euro 4, Euro 3, etc.) will be taxed more heavily than those compliant with more recent standards (Euro 6, Euro 7). This is a criterion officially confirmed by the Minister of Finance.

• Vehicle age: Older vehicles will be taxed at a higher rate, according to recent statements.

According to official estimates, vehicles with large, polluting engines registered under older pollution standards could be taxed up to 10 times more than currently. Thus, the annual tax for these vehicles could reach up to 1,900 lei, compared to approximately 100 lei at present, depending on criteria such as age and pollution standard. These estimates underline the authorities’ intention to discourage the use of polluting cars and to encourage the transition towards more environmentally friendly vehicles.

PNRR commitments

Romania has committed through the PNRR to implement this fiscal reform. Failure to meet this milestone by June 2025 could lead to the loss of significant European funds, estimated between 300 and 600 million euros. The implementation of this tax is considered essential to ensure the continuity of European financing dedicated to the green transition.

Tax collection mechanism

The funds collected from this tax will be distributed between local authorities and the National Company for Road Infrastructure Administration (CNAIR), to support road maintenance and modernization projects.

In addition, the following will be introduced:

• new vignette, calculated based on the age of the car and the level of pollution;

• TollRo – a special tax for trucks, calculated based on kilometers traveled and pollutant emissions;

• additional charges applicable to older vehicles circulating in urban areas.

Reactions and controversies

The measure has already generated numerous debates in the public space, being criticized by certain citizen groups and automotive associations. The main arguments against include:

• the negative social impact on low-income individuals who own older vehicles;

• potential negative economic effects on the second-hand car market;

• lack of viable alternatives for ecological transport given the current infrastructure.

Conclusion

The reintroduction of the car tax for polluting vehicles is a strategic measure in Romania’s effort to combat climate change and to meet the commitments assumed through the PNRR. Although the final details are yet to be determined, it is essential for the authorities to consider the economic and social impact of this measure, to avoid major imbalances and to ensure a fair transition towards sustainable mobility.