Fuel and vehicle tax decree gets Senate approval: it is now law

The suspension of the motor vehicle tax for 2027 has become law. With the Senate’s final approval, the fuel decree of 17 September – which had cut excise duties on diesel from 18 to 25 September – has been enacted in the form passed by the Chamber of Deputies. Under the decree, the exemption applies only to payments due between 1 January and 31 December 2027.

In the meantime, however, the 2027 Budget Bill, approved by the Council of Ministers on 28 October, has made it a permanent measure: the measure, which was originally intended to last for just one year, has thus become permanent.

The exemption applies to individuals for just one duly insured vehicle. This may be a petrol or diesel car – including a hybrid – with a power output of up to 80 kW, or, for those who do not own such a vehicle, a motorbike or moped. Those with more than one eligible vehicle will receive the exemption on just one – the least powerful one – and will continue to pay tax on the others. For 2027, the shortfall in revenue for the regions is estimated at 2,362 million, against compensatory transfers of 2,293.5 million: this leaves a shortfall of 68.5 million. Once fully implemented from 2030, the budget report quantifies the cost at 2.43 billion per year, approximately 70 million more than in the first year of implementation.

The power threshold remains as set in September. During the parliamentary debate, amendments to raise it were withdrawn; therefore, cars with a power output exceeding 80 kW remain excluded from the general exemption. An extension was introduced in the budget bill, but only for a limited group. For families with more than three children, at least one of whom is a minor, the INPS will grant a subsidy equal to the road tax paid, up to €385.71 per year, for a car with six to nine seats and a power output of up to 133 kW. The technical report estimates 47,553 beneficiary households and an annual cost of 18.3 million. This figure corresponds to the maximum reimbursement multiplied by the total number of estimated households: in other words, the forecast assumes that every family will receive the full amount.

Alongside the stamp duty, the conversion bill contains other measures. The Milano-Cortina 2026 Foundation is to receive 150 million to balance its books. The Foundation ended 2025 with a loss of 39.1 million and negative equity of 176.5 million. 288 million has been earmarked for university scholarships.