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Italy’s Meloni scraps road tax for most cars as election nears

The benefit will apply to all motor-bikes and more than 70% of small- and medium-sized cars, but citizens will be entitled to use it for just one vehicle each.

Italy’s Meloni scraps road tax for most cars as election nears

Italian Prime Minister Giorgia Meloni announced on Wednesday that her conservative coalition will eliminate road tax for 14.5 million cars and motorcycles, costing the country's already strained finances over €2 billion. The decision aims to boost support ahead of the upcoming national election. According to a statement from Meloni's office, the exemption will apply to most motorcycles and more than two-thirds of small and medium-sized cars, but citizens will only be eligible for the benefit once per vehicle. The exemption will be in place for one year, from January 1, 2027, to December 31, 2027.

The move comes as Meloni's coalition lags behind the center-left in the polls, and the government faces pressure from a new far-right party, National Future, led by Roberto Vannacci. Vannacci's party has been steadily gaining support. Critics dismissed the measure as an attempt to divert attention from rising fuel prices, which have been on the rise due to the ongoing U.S.-led war in Iran disrupting global supply chains.

The government has already spent €2.8 billion to fund excise duty cuts. Coalition parties welcomed the tax cut as part of the government's agenda to cut taxes, while some experts questioned how Meloni would fund the initiative.

Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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