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Romania's President Traian Basescu urges the government to temporarily suspend the first car registration tax

de A.C.
Luni, 17 noiembrie 2008, 14:01 English | Business

Romanian President Traian Basescu proposed on Monday four measures that the future Executive needs to take into account to support Dacia, Romania's historical car factory. Thus, the executive needs to temporarily suspend the first car registration tax for new cars if this measure is not counter to EU legislation, to maintain policies taken and monitor the illegal registration of cars.

President Basescu officially visited the Dacia Pitesti factory where he had talks with the company's leadership. The visit comes as the factory announced that they will reduce or shut down their activity due to the financial international crisis.

Dacia will shut down the factory in November 20 - December 7 due to the high decreases on the car market and employees will only receive 85% of their salary, a company official announced last week.

Dacia is not the only factory to shut down, as Oltchim SA, a chemical factory in South Romania, also announced to reduce its production due to the same financial crisis at the international level. Thus the chemical factory in Ramnicu Valcea will reduce its production by 40% as it registered losses of 27.68 million Romanian Ron in the first nine months of the year as compared to the 3.37 million Romanian Ron profits in 2007.

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