Italy Abolishes Road Tax for Millions of Cars and Motorcycles From 2027

Rome, September Italy’s government has announced plans to abolish the annual road tax, known as the bollo auto, for millions of smaller cars and motorcycles from 2027.

The measure, approved by the government on September 16, is expected to cover around 14.5 million vehicles. It applies to cars with engine power of up to 80 kilowatts as well as motorcycles, according to reports from Italian media and Reuters.

Under the proposal, the exemption would initially be introduced for 2027 and could subsequently become a permanent measure. The government estimates that the policy will cost more than €2 billion.

The tax change comes as Italian households continue to face pressure from higher energy and fuel costs. The government has also been using temporary reductions in fuel-related taxes to limit the impact of rising prices.

The exemption is expected to apply to more than 70% of small and medium-sized cars, although eligibility will depend on the vehicle’s power and other conditions. The reported proposal also limits the benefit to one qualifying vehicle per citizen.

Italy’s road tax is normally collected by regional authorities, meaning the measure could affect regional government revenues. The government will therefore need to address how the lost revenue will be compensated.

The announcement has also become part of a wider debate about Italy’s public finances. The country’s public debt remains among the highest in the euro zone, making the cost and long-term financing of new tax measures an important consideration.

Prime Minister Giorgia Meloni has separately said that she intends to remain in office until the end of the current legislative term rather than seek an early election. Her government is currently Italy’s longest-serving administration since World War II.

The road-tax announcement is therefore one of the major domestic economic developments in Italy this week. The final implementation details, including financing arrangements and eligibility rules, will determine how the policy affects individual motorists and regional budgets.