Italy announces 2027 car tax exemption for vehicles under 80 kW

The Italian government has introduced a decree establishing a temporary exemption from the car tax (bollo auto) for the year 2027. This measure is intended to provide economic support amid rising fuel costs.

The exemption applies to individuals owning a single vehicle powered by petrol or diesel, including hybrid models, provided the engine power does not exceed 80 kW. Notably, the benefit does not depend on ISEE (Equivalent Economic Situation Indicator) levels or specific age requirements, and it does not apply to purely electric vehicles under this specific provision.

To compensate regional governments for the loss of tax revenue, the state plans to utilize funds from the National Recovery and Resilience Plan (Pnrr), with estimated coverage requirements ranging between 1.46 billion and 2.3 billion euros. The procedure is expected to be automatic, requiring no special applications or documentation from taxpayers. The decree is currently subject to parliamentary conversion into law.