The government is abolishing road tax for cars and motorbikes (for 2027 only). Meloni: “I want to see this through to the end of the parliamentary term”

The Council of Ministers has given the go-ahead to the decree-law, which also includes the abolition by 2027 of road tax for cars with an engine power of up to 80 kW and for motorbikes. Prime Minister Giorgia Meloni stated: “Today, the Government is scrapping one of the taxes most hated by Italians.” According to the government, the measure applies to small and medium-powered cars, which are largely used by families for their daily journeys. The exemption also applies to motorbikes, but each citizen will be entitled to only one concession; it covers all motorbikes and over 70 per cent of cars currently on the road, totalling around 14.5 million vehicles. The aim is to ease the tax burden on car and motorbike ownership for a very large number of Italians. Meloni appeared at a press conference to present the measures adopted by the Council of Ministers, flanked by the two Deputy Prime Ministers, Matteo Salvini and Antonio Tajani, and the Minister for the Economy, Giancarlo Giorgetti. The entire government was present. “Whilst others talk about wealth taxes, we are scrapping a tax on ownership,” the Prime Minister wrote on social media.

“I have read reports – I don’t know where they come from – about Meloni’s constant temptation to call an election,” said the Prime Minister during the press conference. “I have always been very clear: I would like to see the parliamentary term through to its end; I have taken pride in the stability of the government. We are accused of failing to provide effective solutions, and then when we do, we are accused of engaging in electoral manoeuvring. The government’s measures must not be interpreted as being driven by electoral interests; others have done that.” "We intend to continue governing for as long as I have this strong and solid majority," she added. "When the amendment on preferential voting failed to pass in the Chamber of Deputies during the previous reading, I heard from many quarters that the Government did not have the confidence of Parliament and the Chambers; therefore, I believe it is a matter of clarity to call for a vote of confidence on a bill that includes preferential voting provisions. Here too, I want to say that I am pleased with an electoral law that will give citizens the right to choose the coalition, the prime ministerial candidate, the manifesto, and their MP,” said the Prime Minister. “It is an electoral law that allows citizens to choose so much; I believe it is a step forward from which everyone will benefit,” she added. 

In addition to the exemption from motor vehicle tax for 2027, the agenda of the Council of Ministers included measures to tackle high fuel prices and the excise duty discount that expires today: “We have deliberated at length and have come to the conclusion that, faced with a conflict that shows no sign of ending, and with a global trend of rising prices, we believe that continuing to focus on combating price rises is not the main course of action to take – not in the medium term – because it is extremely costly and because it is a form of aid that is distributed indiscriminately rather than concentrating resources on those who need them most. We will continue to introduce cost-containment measures, but on a more limited scale,” the Prime Minister said on this point during a press conference. The Prime Minister therefore announced that the 10-cents-per-litre cut in excise duty on diesel will be extended for a further week; taking VAT into account, this amounts to a reduction of around 12.2 cents. “We will then apply a smaller excise duty cut until 5 October – 5 cents, or 6 cents when VAT is taken into account,” she added. From 6 October onwards, she continued, “the variable excise duty mechanism will come into play again: from that date, we will once more use the government’s increased revenue to lower prices at the pump”.

As mentioned earlier, the road tax exemption will therefore only be introduced for 2027 and applies to cars with a power output not exceeding 80 kW, i.e. approximately 109 horsepower. If a single individual owns more than one qualifying car, the exemption will automatically apply to the one with the lowest power output; where power outputs are equal, the exemption will apply to the car for which the road tax would have been the lowest. The measure also applies to motorbikes and mopeds, but for these, the exemption applies only to those who do not also own a car with a power output below the 80 kW threshold. In this case too, if there is more than one vehicle, the relief applies to a single vehicle, selected on the basis of power output or, for mopeds, the date of first registration. “Car tax is collected by the regions; we are not introducing a measure that someone else has to pay for. We will transfer the lost revenue to the regions,” the Prime Minister concluded.

"The Council of Ministers has decided to abolish road tax for small and medium-powered cars – those used mainly by families for daily journeys – extending the exemption to motorbikes as well, with a single concession per citizen. ‘A genuine wealth tax has been scrapped – one less tax for millions of Italians,’ said the President of Calabria, Roberto Occhiuto, a long-standing advocate of this campaign led entirely by Forza Italia. “I am certain,” he continued, “that this flagship measure will be widely appreciated by the public and will help to strengthen support for a government that is performing well and which, for the past four years, has continued to work to reduce the tax burden.” In conclusion, he spoke of Prime Minister Meloni: “I am delighted that the Prime Minister, Giorgia Meloni, has decided to push ahead with a simple, clear and easily communicable measure: the abolition of the motor vehicle tax is an important sign of consideration for families and confirms the commitment to continuing on the path of tax reduction.”

Sandra Savino, Under-Secretary of State at the Ministry of the Economy and a member of the Forza Italia party, also commented: “The proposal on car and motorbike road tax, which is being discussed by the Council of Ministers today, reflects a campaign that Forza Italia has been pursuing with determination and on which we have been working for weeks. I am particularly pleased that a measure we had identified as a priority for inclusion in the next Budget Bill is being brought forward.”