Car manufacturers in Romania, "shocked" by new fiscal measures applied to Scrappage schemes in 2024

 The automotive sector represented at the national level by the Romanian Automobile Manufacturers Association (ACAROM) declares itself shocked by the new fiscal budget measures aimed at the Rabla and Rabla Plus (scrappage) schemes, announced in the draft Emergency Ordinance published by the Ministry of Finance on Thursday."After the adoption of some fiscal measures that were not previously discussed with the business environment, which directly impact the automotive sector (taxation with 1% of turnover, tax on micro-enterprises, etc.), we've learned with astonishment that the Ministry of Finance (the Government of Romania) is proposing new measures the enforcement of which will seriously impact the automotive sector in Romania. Thus, the change in a completely unforeseen and unbalanced way of the amount of vouchers offered under the Rabla scheme (to half of the current value) and the Rabla Plus scheme (to 1/5 of the current value) will lead to a collapse of the new vehicle market, combined with an exponential increase in the import of used vehicles. In 2023, we expect the new car market to reach 145,000 units, with the major contribution of the Rabla and Rabla Plus schemes," claim ACAROM representatives, in a press release sent on Thursday.According to the source, under the conditions of the announced measures, these schemes lose their attractiveness and thus the forecast for 2024 is disastrous, i.e. a market of new vehicles of a maximum of 80,000 units, with a direct negative impact on jobs in the sector and the turnover of Romanian companies from the automotive field."At the same time, we emphasize that the decrease in the values of the vouchers granted through the 2 scrappage schemes will affect the possibility of Romanian citizens to purchase new, less polluting vehicles. Thus, the beneficial effect of the running of the schemes in previous years is canceled: the increase in the share of hybrid, electrified and electric vehicles, having as a direct consequence, the increase in imports of second-hand, more polluting and unsafe vehicles," the professional association mentions.