Giorgia Meloni scraps road tax for millions of Italians
Prime Minister Giorgia Meloni has announced the abolition of road tax for 14.5 million Italian cars and motorcycles from next year, at an estimated cost of over €2.3 billion. The policy applies to all motorcycles and over 70 per cent of small- and medium-sized cars, though citizens may use the exemption for only one insured vehicle. The announcement comes as Meloni's conservative coalition prepares for a national election by next autumn, trailing the centre-Left in polls and facing pressure from a new far-Right party. Meloni framed the measure as continuing her government's tax-cutting agenda to support families using vehicles daily.
The exemption is currently structured as a one-year measure for 2027, though the government hopes to make it permanent, with officials suggesting it could be formalised through October's budget announcement. However, neither Meloni nor Economy Minister Giancarlo Giorgetti clarified where funding would come from, a concerning omission given that Italy already has the eurozone's highest public debt at nearly 139 per cent of GDP. Opposition parties criticised the move as electoral demagoguery, particularly since regional governments will lose revenue—Tuscany alone stands to lose €350 million—whilst others dismissed it as insufficient compared to rising costs for electricity, gas and fuel. Meloni denied the measure was an attempt to win voters and insisted the government will serve out its full five-year term.
- Italy scrapping road tax affecting 14.5 million vehicles at €2.3 billion cost for 2027
- Opposition condemns move as pre-election demagoguery; funding source unclear
- Regional governments face significant budget shortfalls from lost tax revenue