The Meloni government decided on Wednesday, September 16, to suspend the annual vehicle tax for 2027 for cars with up to 80 kilowatts of power, as well as all motorcycles. The relief is intended to support owners as discounts on fuel excise duties are expected to come to an end.
For now, the suspension will apply from January 1 to December 31, 2027. But the government has promised that, if it remains in office after the elections, it will renew the measure in the following budget, effectively making the abolition permanent. According to government calculations, the eligible cars represent 70% of those currently on the road, covering more than 14.5 million vehicles. Popular models include the Fiat Panda, Toyota Yaris and Renault Clio; owners can check their vehicle registration document for its power rating.
There is an important restriction: the exemption will apply to only one car per owner. Anyone with several cars will receive it for the least powerful one.
The loss of revenue is no small matter for public finances. The state has committed to compensating the regions, which normally collect the vehicle tax, but how it will do so remains unclear. That adds another unresolved question to this autumn’s budget discussions.
Politically, the announcement has obvious appeal. The vehicle tax is among the charges most disliked by car and motorcycle owners. Yet the decision once again runs counter to international calls to discourage fuel consumption at a time when fuel is not only becoming more expensive but also harder to obtain.
The situation in the Middle East adds to those pressures. Saudi Arabia could reduce oil exports as early as September, with supplies affected by the Houthi blockade of the Suez Canal and the blockade of the Strait of Hormuz. In recent months, other European countries have taken a different approach, encouraging citizens to use less fuel.
Italy has chosen another route. The vehicle-tax suspension continues a policy of helping motorists maintain their consumption rather than encouraging them to cut back.