Italy Scraps Road Tax: 14.5M Drivers Benefit | Explained

Prime Minister Giorgia Meloni's government announced on 16 September 2026 that Italy will scrap road tax (bollo auto) for 14.5 million cars and motorcycles starting in 2027. The €2.36 billion tax cut arrives as Meloni's centre-right coalition trails the centre-left opposition and faces a challenge from the far-right National Future party ahead of the Italy 2027 general election, which must be held by December 2027. Critics describe the road tax abolition as an election-year giveaway that does little to address rising energy costs.

What is bollo auto and how does Italy's road tax work?

The bollo auto is an annual vehicle ownership tax levied on cars, motorcycles and scooters in Italy. Rates depend on engine power, measured in kilowatts (kW), and emissions class. The tax is one of Italy's most hated levies, and scrapping it has become a recurring political promise. Under the new draft decree, the exemption applies in 2027 to all motorcycles and to small and medium cars with a maximum power output of 80 kW (about 110 hp). Each citizen may use the benefit for only one insured vehicle, meaning second and third cars continue to pay the tax next year.

Who benefits from Italy's road tax cut?

According to the government, 14.5 million vehicle owners will benefit. The measure covers:

• All motorcycle and scooter owners
• More than 70% of small- and medium-sized cars, up to 80 kW of engine power
• One insured vehicle per citizen

However, owners of cars with engine power above 110 hp do not benefit, and the road tax remains in place for second or third cars. The cabinet approved the plan as part of a draft decree, with an estimated cost of €2.36 billion for 2027.

Why is Meloni scrapping road tax now?

Prime Minister Meloni framed the move as tax relief for motorists. Today we draw a line through one of the most hated taxes, she said after the cabinet meeting. We choose to continue scrapping taxes, in line with earlier centre-right tax policy.

But the timing is politically significant. Giorgia Meloni government is under pressure on two fronts: polls show the centre-left opposition ahead, and the radical-right Futuro Nazionale, a splinter from coalition partner Lega led by former general Roberto Vannacci, is attracting disaffected voters. Economy Minister Giancarlo Giorgetti said Rome aims to make the road tax abolition permanent, although neither he nor Meloni has explained how to fund the shortfall.

How much will scrapping road tax cost Italy?

The measure costs the treasury more than €2.3 billion in 2027. That is on top of €2.8 billion already allocated in recent months to soften high fuel prices. Borrowing looks risky: Italian public debt is projected to peak near 139% of gross domestic product (GDP), the highest in the euro zone and above Greece's ratio. Critics argue the tax cut will widen the deficit without a clear financing plan.

An adviser to Futuro Nazionale dismissed the policy with a sharp comparison: It is like treating pneumonia with a baby rattle, referring to the limited relief it provides against rising electricity, gas and petrol costs.

Political reaction and what happens next

Opposition parties and economic analysts describe the road tax cut as a transparent attempt to win voters before the parliamentary election. The government has extended a diesel excise duty cut until 25 September 2026 as part of broader fuel relief. Whether the bollo auto exemption becomes permanent will depend on next year's budget negotiations and the election outcome.

Frequently Asked Questions

What is the bollo auto in Italy?

The bollo auto is Italy's annual vehicle ownership tax, charged on cars, motorcycles and scooters based on engine power and emissions class.

Who qualifies for Italy's 2027 road tax exemption?

All motorcycle and scooter owners qualify, plus owners of small and medium cars up to 80 kW (about 110 hp), limited to one insured vehicle per citizen.

How much will Italy's road tax cut cost?

The exemption is estimated to cost €2.36 billion in 2027, on top of €2.8 billion already spent on fuel price relief.

When are Italy's next elections?

National elections must take place by December 2027. Italian voters can also go to the polls multiple times next year for local and regional ballots.

Is Italy's road tax abolition permanent?

Not yet. The government has approved a one-year exemption for 2027 and says it aims for permanent abolition, but funding remains unclear.