Meloni government cuts car tax for millions of drivers

Because of fuel prices

Meloni government gives millions of drivers a gift

The government in Rome is reacting to the increased fuel prices. Most car owners will not have to pay vehicle tax next year.

The Italian government has decided to suspend vehicle tax for millions of vehicles in 2027. The reason is the high fuel prices in the country. The regulation applies to all cars with an output of less than 80 kilowatts. That corresponds to around 110 hp. Motorcycles and scooters are also included. According to official information, the measure affects around 14.5 million vehicles.

In the region Rome For example, car owners had to pay between 3.30 and 4.95 euros per KW annually, depending on the vehicle class. In the Tuscany The annual vehicle tax was previously between 2.71 and 5.45 euros per KW.

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However, there are restrictions: each owner can only claim a single vehicle. The tax exemption does not apply to larger cars or second or third cars. According to the government, the relief will primarily benefit families.

Prime Minister Giorgia Meloni described the car tax as “one of the most hated taxes” in the country. The regions are entitled to the revenue from the levy. According to business associations, the tax brings in more than seven billion euros annually.

The government initially provided around 2.3 billion euros to compensate for the shortfalls. This compensation is not enough for the regions. The fuel prices in Italy are currently 2.13 euros per liter of petrol and 2.24 euros for diesel.