by InTrieste
Italy’s government has approved a structural overhaul of its vehicle tax system, announcing that the annual bollo auto will be abolished from 2027 for most passenger cars with engines up to 80 kilowatts and for motorcycles.
Prime Minister Giorgia Meloni said the exemption would apply to one qualifying vehicle per citizen, while Transport Minister Matteo Salvini estimated the measure would benefit about 70% of Italy’s vehicle fleet, including many popular compact models.
The government said it would compensate Italy’s regions and autonomous provinces for the estimated €2.3 billion in lost revenue, partly using unspent funds from the National Recovery and Resilience Plan (PNRR).
The cabinet also approved a temporary extension of reduced diesel fuel taxes. Beginning Sept. 18, diesel prices will be lowered by 12.2 euro cents per liter, including VAT, before the discount is reduced to 6.1 cents from Sept. 26 through Oct. 5.
The proposal drew criticism with national consumer groups noted that the exemption will not extend to larger or more powerful vehicles.
