Italy to suspend car tax for low-power vehicles in 2027

The Italian government has announced the suspension of car tax payments for low-power vehicles starting in 2027. This decision, following previous fuel excise reductions, has sparked debate regarding mobility management and public subsidies.

Local authorities, including the Municipality of Milan, have expressed opposition to removing vehicle taxes. Officials argue that instead of reducing revenue, state resources should be invested in enhancing public transport services and lowering subscription costs for citizens.

Data from the 2022 National Observatory for Public Transport indicates a significant funding gap: while the total cost to produce bus, tram, and metro services was 7.34 billion euros, user ticket sales and subscriptions covered only 1.88 billion euros, or approximately one-quarter of the total cost.