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Italy Scraps Road Tax for Most Cars as Election Nears

On Wednesday, Italian Prime Minister Giorgia Meloni announced the government will abolish the annual road tax for 14.5 million cars and motorbikes during 2027, granting a one-year exemption to help with soaring fuel costs.
Rising fuel prices, driven by global supply disruptions, forced the government to act as Meloni's coalition seeks to bolster political support ahead of next year's election.
Officials estimate the one-year measure will cost €2.36 billion, covering all motorbikes and over 70% of cars, with funding drawn from unspent National Recovery and Resilience Plan money.
Critics dismissed the tax cut as a political diversion, with Rossano Sasso, a senior aide to Roberto Vannacci, describing the measure as 'like treating pneumonia with a throat lozenge.'
Italy's public debt peaks at 139% of GDP this year, the second-highest in the eurozone, while opposition leader Elly Schlein proposed prioritizing EU budget flexibility for heat pumps and insulation over tax holidays.

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