Last updated: 15 March 2018
Companies wishing to renew their fleet and benefit from non-repayable funding under the "Rabla" scrappage program may file their applications between 15 and 28 September 2018, knowing that the program’s budget for 2018 has been significantly reduced compared to previous years.
In accordance with Government Decision no. 56/2018, published in Official Journal no. 188/01.03.2018, the total budget allocated for this year is 133 million Lei (approximately 28.5 million Euros). Out of this amount, 113 million Lei are allocated to natural persons and 20 million Lei (about 4.2 million Euros) are allocated to legal entities. We remind you that, in 2017, the program’s budget was 180 million Lei (about 39 million Euros).
Launched in 2010, the "Rabla" program aims to encourage the renewal of the local car fleet, support the automotive sector and encourage the purchase of less polluting vehicles.
Under certain conditions, beneficiaries of the program have access to funding through a "scrappage premium" granted by the Environmental Fund. This year, funding is no longer granted for used vehicles registered in Romania before 31 December 2010, except for vehicles owned by territorial administrative units or public institutions.
Eligibility Conditions for Legal Entities
In order to benefit from the "Rabla" Program, companies must meet several conditions, as set out in the Guide of the Program for the Promotion of the Revival of the National Automobile Fleet 2017 - 2019, published in Official Journal no. 293 on 25 April 2017.
For example, the most important criteria are:
• The legal entity must be the owner of the vehicle intended for scrapping;
• The legal entity must have its professional office in Romania and do business in Romania;
• The legal entity must have complied with its tax obligations towards the State budget, local budgets and the Environmental Fund budget;
• The legal entity must not be subject to insolvency proceedings or judicial reorganization etc.;
• The legal entity must not have been convicted for environmental offenses;
• The minimis aid (the scrappage premium) must not be used for the purpose of carrying out activities in the sectors stipulated in Appendix 1 of the Treaty on European Union (especially the processing and marketing of agricultural products and primary production of agricultural products), nor for the purchase of new vehicles used for the road transport of goods.
Amount of the Scrappage Premium
Companies can benefit from a scrappage premium of 6,500 Lei (approximately 1,413 Euros), which is granted depending on the level of CO2 emissions/km generated by the propulsion system of the new vehicle. In 2018, the scrappage premium is granted for the acquisition of a new vehicle with a propulsion system that generates a maximum of 130g of CO2/km.
Companies can also benefit from additional bonuses - "eco-bonuses" - under certain conditions:
• An additional bonus of 1,000 Lei (approximately 217 Euros) for the purchase of a new vehicle, equipped with a propulsion system that generates a maximum of 98g CO2/km, in mixed operating mode.
• An additional bonus of 1.700 lei (approximately 369 Euros) for the purchase of a new vehicle, equipped with a hybrid propulsion system.
Please note that “eco-bonuses” can be cumulated. Therefore, the total maximum amount of the scrappage premium that can be received by a company for the purchase of a vehicle through the “Rabla” Program is 9,200 Lei (approximately 2,000 Euros).