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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

Italy's Prime Minister Giorgia Meloni has announced plans to abolish road tax for 14.5 million cars and motorbikes, a decision that is expected to cost the country's struggling government over €2 billion. The move comes as Meloni's conservative coalition faces pressure from a new far-right party called National Future, led by Roberto Vannacci, which is steadily gaining support in polls.

The government is seeking ways to boost its popularity ahead of a national election next year. The exemption will apply to all motorbikes and more than 70% of small- and medium-sized cars, but citizens will be allowed to take advantage of the benefit for just one vehicle each. The exemption will be in place for just one year, from January 1st to December 31st, 2027, at a cost of €2.36 billion.

It is unclear where Meloni will find the funds to cover this initiative. The government's most recent budget plan, to be updated soon, shows that Italy's public debt is set to peak at nearly 139% of its GDP this year, making Greece the most indebted country in the eurozone. While Meloni's coalition supports the tax-cutting agenda, critics argue that this move is an attempt to divert attention from rising fuel prices, which have been rising due to the ongoing U.S. war in Iran.

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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