Full Breakdown
Italy Abolishes Road Tax for 14.5 Million Cars and Motorbikes Ahead of 2027 Election
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Core Event
On September 16, 2026 the Italian cabinet approved a decree-law eliminating the vehicle ownership tax (bollo auto) for all motorcycles and for small- and medium-powered cars (up to 80 kW). The exemption covers roughly 14.5 million vehicles—over 70 % of the car fleet—and is limited to one vehicle per citizen. It takes effect for the 2027 tax year (January 1 – December 31). The government estimates the fiscal impact at €2.3-2.36 billion.
Background & Context
Prime Minister Giorgia Meloni’s centre-right coalition faces a tight race with the centre-left opposition ahead of the autumn 2027 election. The tax cut follows temporary diesel excise-duty reductions aimed at curbing fuel-price pressure. Italy’s budget projects public debt near 139 % of GDP, making the decision financially sensitive.
Data & Statistics
- Vehicles covered: ? 14.5 million (all motorcycles, > 70 % of cars).
- Power limit for cars: <= 80 kW (? 109 hp).
- Estimated cost: €2.3 billion (source A) vs. €2.36 billion (source B).
- Public debt: ? 139 % of GDP.
- Diesel excise-duty cut: 12.2 cents/L reduced to ? 6 cents/L (Sept 26 – Oct 5); variable mechanism resumes Oct 6.
Official Statements & Responses
Economy Minister Giancarlo Giorgetti said the decree is a one-off step, with the possibility of embedding it in the October budget if finances allow. The cabinet argued that broad excise-duty subsidies are “extremely costly” and should be replaced by more targeted support.
Criticism & Opposition
Eugenio Giani, governor of Tuscany (centre-left Democratic Party), called the move “reckless electoral demagoguery,” noting that regional reimbursement of just over €100 million does not offset an estimated €350 million loss in revenue for Tuscany.
Timeline
- September 16, 2026 – Cabinet approves the road-tax abolition.
- September 26 – October 5 – Diesel subsidy reduced to ? 6 cents/L.
- October 6 – Variable excise-duty mechanism re-activated.
- January 1 – December 31 2027 – Road-tax exemption period.
Conflicting Reports & Gaps
The fiscal cost is reported as €2.3 billion by some outlets and €2.36 billion by others, reflecting a lack of a unified estimate. No detailed financing plan has been disclosed, and the impact on regional budgets remains partially quantified, with only Tuscany’s figures publicly cited.
Verbatim Quotes
- “Today, the government is eliminating one of the taxes most hated by Italians,” — Giorgia Meloni, prime minister
- “It's like treating pneumonia with a throat lozenge,” — Rossano Sasso
What’s Next
The October budget could formalise the exemption and outline financing for the €2-plus billion shortfall. The diesel excise-duty schedule will be reviewed after October 6, and the European Commission is expected to assess Italy’s fiscal plan in its upcoming country-specific review.