The government is shifting gears on cars and fuel. Following a Council of Ministers meeting, Prime Minister Giorgia Meloni announced the structural abolition of the annual car tax (“bollo”) for small and medium-power cars, as well as for motorcycles and other motor vehicles.
According to the prime minister, the measure will affect around 14.5 million vehicles — more than 70% of those currently on the road. The exemption will apply specifically to a person’s first registered vehicle, up to a certain engine power threshold. Since the tax is collected by Italy’s regions, the state will transfer the necessary funds to compensate them for the lost revenue.
There are also changes on the fuel front. The government does not intend to continue with broad, medium-term interventions on prices, having already allocated roughly €2.5 billion for such measures. Starting October 5, the system of variable (“mobile”) excise duties will come back into effect: under this mechanism, additional tax revenue collected by the state will be used to help bring down the price of petrol and diesel at the pump.
