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[POLITICS] · Italy · 100 sources

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Italy to abolish car tax for 14.5 million vehicles in 2027

The Italian government has announced the structural abolition of the car tax (bollo auto) for the 2027 tax year. The measure targets vehicles with a power output of up to 80 kW, including small and medium-sized cars and motorcycles. It is estimated to affect approximately 14.5 million vehicles, representing over 70% of the cars currently in circulation.

Under the new rules, each citizen is eligible for the exemption on only one vehicle. If a person owns multiple eligible vehicles, the exemption will automatically apply to the one with the lowest power output. For hybrid vehicles, the power threshold is determined by the thermal engine rather than the total system power.

The initiative is expected to cost approximately 2.3 billion euros. To mitigate the loss of revenue for regional governments, the state plans to provide compensation using unspent funds from the National Recovery and Resilience Plan (PNRR).

In addition to the tax cut, the government is implementing a phased reduction of diesel excise duties. While the current discount will be reduced through October 2026, a mechanism for mobile excise duties will be reintroduced to manage future fuel price fluctuations. While supporters view this as a concrete step to reduce the tax burden on families, political opposition parties have characterized the timing as an electoral maneuver ahead of the 2027 elections.

Entities

Antonio Tajani · António Costa · Confesercenti · Confesercenti Calabria · Council of Ministers · Eni · European Union · Giancarlo Giorgetti · Giorgia Meloni · IP · Italian Government · Italy

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