Confusion on leasing market

The cars purchased in leasing became more expensive as of the end of last month. How much so, it is yet hard to say, as the latest regulations have stirred confusion on their respective market, which has not been addressed by the Finance Ministry until now. At least this is what the leasing companies feel. “This is a work in progress. We will discuss with the representatives of the two associations of leasing companies on the Romanian market,” Mihai Hura, director with the Finance Ministry told the Leasing Forum seminar organised by Finmedia. One of the more recent government decisions on this issue, 1840/2004, enforced on November 18, 2004, which complements the enforcement guidelines of Law 571/2003 on the Fiscal Code stipulates that the excises for the vehicles purchased in leasing shall be calculated for the entire entry value plus the customs duties and other special taxes if any. Excises would previously apply only to the residual value of the vehicle, usually 20%, and were therefore lower. Gabriel Biris, an attorney with Salans company, says the new regulations mean excises will be applied to the entry value of the products for the both the leasing contracts concluded from now on and for those concluded in the last few years. ZF