On Wednesday, September 16, 2024, Italian Prime Minister Giorgia Meloni announced that the country will abolish the annual vehicle tax, known as the “auto bollo,” for more than 70 percent of cars on the road. The measure is intended to ease the financial burden on motorists amid rising fuel prices, which have exceeded €2 per litre for several months.
According to the transportation ministry, the tax cut will apply to private vehicle owners only. Cars used for professional or company purposes will not qualify. The exemption is not tied to income level or ISEE status.
Eligibility is limited to small and medium‑sized vehicles, scooters, and mopeds with a power rating of up to 80 kilowatts (kW). The power rating can be found on the vehicle’s registration document in field P.2. Hybrid vehicles are assessed based on the internal combustion engine’s power alone, not the combined electric power. Motorcycles have no power limit, but all vehicles must be properly insured to receive the waiver.
Electric vehicles are already exempt from the auto bollo for the first five years in most regions and then enjoy a reduced rate, so the new rule does not affect them.
Facile.it estimates that the average annual savings for eligible vehicles will be €163. The exact amount varies by a car’s power, its Euro emission class, and the region, as the tax is administered locally.
The waiver is capped at one vehicle per person. If a household owns multiple cars registered under different names, each owner will receive a tax exemption for their lowest‑powered vehicle. If a person owns more than one vehicle, only the lowest‑powered one will be exempt. In cases where two vehicles have identical power ratings, the one with the lower tax rate will be exempt; if the rates are the same, the older registration will receive the waiver.
The government has indicated that the tax cut will be applied automatically, so vehicle owners should not need to take any additional action. Clarification is expected when the draft decree is published.
While the announcement frames the measure as “structural,” it is currently a temporary relief limited to the year 2027. The transport ministry has stated that the government intends to make the exemption permanent in the next Budget Law, which is under development and will be voted on at the end of the year.
Overall, the policy is projected to benefit approximately 24.6 million people, providing a significant reduction in annual vehicle costs for the majority of private car owners in Italy.
Article source: www.thelocal.it | Image credit: www.thelocal.it