The exemption will apply to vehicles with engines up to 80 kilowatts
The Italian government has announced the cancellation of the road tax for motorcycles and small cars in 2027. This move is expected to cost the state budget more than 2 billion euros. This was reported by Ukrinform citing Reuters, according to the portal PromPolitInform.
On Wednesday, September 16, Italy announced the exemption of 14.5 million vehicles from the fiscal payment starting next year. The estimated cost of the planned measure is 2.36 billion euros.
Conditions for the exemption
The tax waiver will only be valid in 2027 and will apply to vehicles with a maximum engine power of up to 80 kilowatts. Citizens will be able to benefit from the policy for only one properly insured vehicle.
Political context of the decision
The decision was made amid government attempts to boost support ahead of the 2027 national elections. Prime Minister Giorgia Meloni’s conservative coalition trails in the polls and faces pressure from a rising new far-right party.
«Today the government is abolishing one of the taxes Italians hate the most», — said Meloni.
Position of international institutions
Earlier, the cabinet directed about 2.8 billion euros toward cutting excise taxes to soften the impact of high fuel prices. Specifically, the reduced excise duty on diesel fuel was recently extended until September 25.
The European Commission and the IMF have criticized such measures, noting that Italy should focus relief on vulnerable categories and reduce the overall impact on public finances.
Photo: Italian Government
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