Italy to Scrap Road Tax for 14.5 Million Vehicles

Prime Minister Giorgia Meloni announced that Italy will eliminate the road tax for approximately 14.5 million motorcycles and small-to-medium-sized cars beginning January 1, 2027. The exemption applies to one properly insured vehicle per citizen with a maximum power output of 80 kilowatts. The measure is currently structured as a one-year initiative with an estimated cost of €2.36 billion, though Economy Minister Giancarlo Giorgetti stated the government intends to try to make the exemption permanent.

The decision comes as Meloni's conservative coalition trails the centre-left in polls and faces pressure from the far-right National Future party ahead of the 2027 national election. Critics and aides to National Future leader Roberto Vannacci dismissed the tax cut as an insufficient attempt to distract from rising electricity, gas, and fuel costs.

This fiscal move occurs while Italy remains the most indebted country in the euro zone, with public debt projected to peak at nearly 139% of GDP. The government has also implemented excise duty cuts to combat rising fuel prices as part of its broader economic strategy.