Decree on excise duties and vehicle tax published in the Official Gazette; comes into force on Friday
Around 14.5 million cars and motorbikes will be exempt from paying road tax, with the sole stipulation that each citizen is entitled to only one exemption
The decree setting out the new reduction in excise duty on diesel and the abolition of road tax for 2027 on cars with an engine power of up to 80 kW and on motorbikes has been published in the Official Gazette and comes into force tomorrow, 18 September. The measure is funded by 2.362 billion, drawn from the reallocation of funds yet to be distributed, provided for under certain national budget headings and from the reserves of certain ministries.
Around 14.5 million cars and motorbikes will be exempt from paying road tax, with the sole proviso that each citizen will be entitled to just one exemption. The full cost of the measure can only be calculated once the details are available: however, the figure is in the region of 2.5 billion, which will have to be compensated to the regions, the recipients of the revenue.
There are 24,608,867 people in Italia who are recorded as owning at least one vehicle with a power output of up to 80 kW and who therefore fall within the group potentially eligible for the exemption from paying car and motorbike road tax provided for by the measure approved yesterday by the Council of Ministers. The figure was compiled by the Ministry of Infrastructure and Transport, through the Vehicle Registration Offices and the Transport Department, based on the national vehicle fleet and the number of individuals who own at least one vehicle, making it possible to quantify the potential scope of the measure for the first time.
In total, there are over 59 million cars and motorbikes on the road in Italia, of which over 34 million have an engine power of up to 80 kW. For 2027, the measure provides for exemption from road tax on the first vehicle, with no ISEE-related limits. The Government’s aim is to make this measure a permanent feature through the next Budget Bill.
Car tax decree: 1.698 billion from savings on the NRRP
The funding for the decree exempting small- and medium-engined cars and motorbikes from road tax in 2027 comes mainly from funds earmarked under the National Recovery and Resilience Plan (PNRR). This amounts to 1.698 billion out of the measure’s total budget of approximately 2.3 billion. Specifically, 200 million has been earmarked for this year, 1.460 billion for 2027 and 38 for 2028. The funds are set out in a table attached to the decree, listing the individual PNRR measure codes. Article 7, which sets out the funds to finance the decree, also provides for the use and reallocation of the funds in a highly fragmented manner across numerous ministries.
