Fiscal Reform Raises Vehicle Taxes on Hybrids by Over 1,400%

A major change in the local taxation system is hitting car owners hard — particularly those who invested in hybrid technology. Local authorities have scrapped the bonus scheme for eco-friendly vehicles, introducing a new calculation formula that penalises both engine displacement and vehicle value.

The financial impact has been dramatic for many owners. A telling example from Bucharest shows that the tax on a hybrid car has risen from 145 RON last year to 2,244 RON in 2026 — an increase of more than 1,400%. Similar situations are being recorded across the country, where annual taxes on these vehicles frequently exceed 2,000 RON.

This cost explosion stems from the removal of tax reliefs of up to 95% that local councils had previously granted to encourage the purchase of low-emission vehicles. The measure was implemented at the end of 2025, catching many owners off guard who had not budgeted for these additional expenses.

The absurdity of the system becomes apparent when comparing different engine categories. A hybrid with a 3-litre engine can be taxed at over 2,200 RON, while a polluting 1.6-litre vehicle manufactured decades ago pays just 260 RON in annual tax.

The situation is generating considerable frustration among drivers, not least because the new legislation appears to contradict European emissions-reduction targets. Many owners are complaining that their new payment obligations far exceed the budgets they had planned for this year.

Despite these fiscal pressures, interest in eco-friendly vehicles remains high in Romania. The total value of this market segment grew by 3.5% over the past year, and the volume of for-sale listings rose by 7.6%. Toyota retains its leading position, with the Corolla recording a 51% increase in listings, while the plug-in hybrid segment posted the largest growth in popularity, at 25%.