Rome moves to axe the hated bollo auto (road tax) for all motorcycles and over 70% of all cars on the road ahead of elections. It is part of a wider package to shore up household spending power.
The government approved the abolition of vehicle ownership tax (bollo auto) on Wednesday for small and medium-powered cars as well as for motorcycles, Palazzo Chigi sources said. The exemption, which takes effect in 2027, applies to cars with a power output of up to 80 kW and covers all motorcycles, though each citizen can only claim it for one vehicle. In total, the measure is expected to benefit around 14.5 million vehicles.
Premier Giorgia Meloni said the funds previously used to combat high fuel costs would be redirected into what she called “a simple, structural measure” aimed at those who use a car or motorbike daily, whether for work, the school run or getting around. “While others talk about wealth taxes, we are removing a property tax,” she wrote on social media. She added that the government was continuing “on the path of reducing the tax burden” — currently around 43% and slightly higher than in recent years.
Timing under scrutiny
The road tax announcement comes as Economy Minister Giancarlo Giorgetti warns that the cost of servicing Italy’s public debt is rising “at an alarming rate”. It raised questions over how the tax cut will be funded without adding further strain to the public purse.
Italy is also planning to draw on Brussels’ National Escape Clause, worth an estimated €14 billion in extra deficit headroom through 2028, to help soften energy costs for households.
