Car tax exemption 2025: 30 million vehicles affected, here's what they are
Quick Look
- The Italian government expects exemption from car tax for 70% of the national fleet in 2025, equal to approximately 30 million vehicles.
- The relief applies to cars with up to 80 kW of thermal power, especially city cars and small cars, while sports cars, sedans and higher segment SUVs are excluded.
- For owners of multiple vehicles, the exemption applies only to the vehicle with the lower horsepower.
AI-generated summary
Why It Matters
The provision on exemption from car tax was approved by the Council of Ministers and will concern 70% of the Italian vehicle fleet, based on the power of the combustion engine detectable in field P.2 of the circulation certificate.
From the Pandina to the Jeep Avenger. According to government estimates, 70% of the fleet circulating in Italy will be exempt from paying car tax next year, which translated into numbers means around 30 million cars.
CARS EXEMPTED: The list of cars up to 80kW of power is long. Transport Minister Matteo Salvini gave some examples directly: Clio, Polo, Yaris, Panda, 500 (in the Hybrid version). And to these are added, for example, the Dacia Sandero or the Jeep Avenger 1.2. The ones most affected are the A segment cars, i.e. the so-called city cars, compact cars with a length generally less than 3.70-3.85 metres, designed mainly for urban mobility. The second segment involved is B, i.e. compact cars, with a length approximately between 3.7 and 4.2 metres. Then there are many B-SUVs and small crossovers, cars with a raised body but also in this case of compact dimensions, generally between 4.20 and 4.50 meters long.
However, as Codacons explains, sports cars, segment D cars (medium or large sized cars, with a length approximately between 4.5 and 5 metres), C-SUVs and most sedans are excluded.
HOW TO UNDERSTAND IF YOUR CAR IS EXEMPTED: To understand if your car falls within the criteria set by the decree approved in the CDM, you need to check field P.2 on the circulation certificate, where the engine power in kW is shown. In fact, the car tax is calculated on this value and not on the overall system power which, for example, in the case of hybrid cars is made up of the sum of the power generated by the combustion engine and the electric one. In the case of hybrids, the legislator considers only the power supplied by the combustion engine.
STOP TO TAX BUT FOR ONLY ONE CAR OR MOTORCYCLE: The provision specifies that in the case of owners of multiple cars, the exemption applies only to the one with less power and, in the case of equal power, to the one who usually pays the lowest tax. For motorbikes and mopeds, the exemption is total, without power specifications, but even in this case if you own more than two wheels, the relief applies to only one, the one with less power. Furthermore, it cannot be cumulated with that used for a car registered to the same owner.
Open Questions
- What is the exact date of entry into force of the exemption?
- How will the actual engine power be verified during the check?
- What is the estimated lost tax revenue for the State?
- Is there compensation provided for regions that lose revenue from stamp duty?
