Italy automotive tax and emissions policy

In late July 2026, data showed that Italy’s automotive sector generated €83 billion in tax revenue in 2024, representing 13 % of total state receipts and 3.7 % of GDP. The bulk of this income came from fuel excise duties and VAT on vehicle maintenance, reflecting a large, aging fleet of over 47 million vehicles. Experts advised motorists to cut ownership costs through preventive maintenance, proper tyre pressure, seasonal tyre rotation, and eco‑driving techniques, which also reduce fuel consumption.

Two days later, the focus shifted to policy measures aimed at lowering road‑transport emissions. The government’s Decreto Omnibus, under parliamentary review, proposes taxing company cars by engine size rather than actual emissions, prompting industry groups to call for a system that rewards genuine greenhouse‑gas reductions and renewable fuels. The same eco‑driving guidance from the earlier report is reiterated as a practical complement to the proposed tax reforms, linking fiscal policy with behavioural measures to curb emissions in Italy’s car sector.