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Italy approves 2027 vehicle tax suspension for small engines

Updated 5 times since CLSTR started tracking revisions of this situation.

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2026-09-20 21:47 UTC → 2026-09-21 08:51 UTC · added ~~removed~~

The Italian government has approved a decree-law to suspend the vehicle tax (bollo auto) for the year 2027. This measure applies to a single vehicle per individual, including motorcycles and mopeds, provided the engine power does not exceed 80 kW. The exemption is expected to cover approximately 70% of the national fleet, benefiting roughly 14.5 million vehicles. To address the estimated 2.3 to 2.4 billion euro cost, Economy Minister Giancarlo Giorgetti indicated that savings from the Recovery and Resilience Facility (PNRR) could be utilized. European Commission Economy Commissioner Valdis Dombrovskis noted that while member states may have “a certain margin” in managing PNRR liquidity, the instrument remains a “performance-based tool, not a cost-based tool,” meaning the Commission will evaluate whether required reforms and investments are implemented. The decision has elicited mixed reactions. While some business groups welcome the relief for families, the Movimento 5 Stelle and regional leaders in Sardinia have expressed concerns that the loss of revenue will impact essential services such as healthcare and transport. Critics have also questioned whether the funds should instead be directed toward infrastructure and school safety. Additionally, trade representatives for commercial agents have requested specific measures for individuals who rely on vehicles as essential tools for their work.

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