Italy to scrap annual car tax for 14.5m vehicles in 2027
Meloni government abolishes unpopular levy for small cars and motorcycles up to 80 kW, costing over €2.3bn ahead of 2027 elections.

KEY POINTS
- Tax abolition covers 14.5 million vehicles from 2027
- Applies to motorcycles and cars up to 80 kW (approx 109 hp)
- Estimated cost to state budget is €2.36 billion
- Measure initially temporary; government seeks to make it permanent
- Public debt projected at 139% of GDP in 2026
Italy will abolish the annual vehicle ownership tax for 14.5 million cars and motorcycles starting in 2027, the government announced on Wednesday. The exemption applies to motorcycles and cars with a maximum power of 80 kilowatts, covering over 70% of small and medium vehicles.
Prime Minister Giorgia Meloni called the levy one of the most hated taxes by Italians and framed the move as part of the centre-right's tax-cutting strategy. Economy Minister Giancarlo Giorgetti said the measure is initially temporary but the government intends to make it permanent in next year's budget.
“Today, the government eliminates one of the ugliest taxes for Italians.”
The scheme allows one vehicle per citizen and is estimated to cost the state €2.36 billion. Italy's public debt is projected to reach nearly 139% of GDP in 2026, surpassing Greece as the highest in the euro zone.
Critics argue the one-year scope makes it an electoral stunt ahead of the 2027 general election. Opposition figures labelled it a misleading operation, while the government compared it to the 2008 abolition of the primary residence property tax.
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