Italy will suspend vehicle tax for many vehicles in 2027
Quick Look
- The Italian government under Giorgia Meloni is suspending vehicle tax for cars under 80 kW as well as motorcycles and scooters from 2027 in order to relieve the burden on families in view of high fuel prices.
- The measure affects around 14.5 million vehicles, with only one vehicle per owner benefiting.
- The regions criticize the compensation as insufficient.
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Why It Matters
In Italy, fuel prices have risen sharply in recent months, leading to public pressure on the government. The vehicle tax (bollo auto) is considered one of the most unpopular taxes in the country and usually goes to the regions.
In Italy too, you currently have to pay significantly more at petrol stations than before. Now the Meloni government is suspending vehicle tax for many cars and motorcycles for 2027.
Italy: Here too, fuel prices have risen sharply in recent months. Photo: Sven Hoppe/dpa
Dusseldorf. In view of the high fuel prices, the government in Italy is largely waiving vehicle tax for a year. The government of Prime Minister Giorgia Meloni decided in Rome not to levy a tax on all cars with an output of less than 80 kilowatts in 2027. The regulation also applies to all motorcycles and scooters that are widely used in Italy. According to official information, this includes a total of around 14.5 million vehicles.
However, each owner can only claim one vehicle: the regulation does not apply to larger cars or second or third cars. The relief should also automatically apply to the vehicle with the lowest performance. A car with an output of 80 kilowatts usually has an engine of around 110 horsepower. According to the government, the suspension of vehicle tax is primarily intended to provide financial relief for families.
Meloni, who has been in power for nearly four years as leader of the right-wing Fratelli d'Italia (Brothers of Italy) party, described the car tax (in Italian: bollo auto) as "one of the most hated taxes" in the country. Her right-wing coalition represents the latest decision as part of a series of tax cuts. There have been indications from the left-wing opposition that a new parliament will most likely be elected in Italy next year.
In Italy, the revenue from vehicle tax actually goes to the regions. According to business associations, vehicle tax brings more than seven billion euros into their coffers every year. With the new decree, the Meloni government initially provided around 2.3 billion euros to compensate for the shortfalls next year. This is not enough for the regions.
Fuel prices have also risen sharply in Italy in recent months. The liter prices are currently 2.13 euros for petrol and 2.24 euros for diesel.
More: Reiche wants to reduce sales tax on gasoline and diesel – and announces further measures
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Open Questions
- How will the additional burden on the regions be compensated for in the long term?
- Does the tax suspension also apply to electric vehicles?
- Will the measure be extended or adjusted after 2027?
