Andrea Innocenti In today's Cabinet meeting, the government approved a tax reform that eliminates the payment of car and motorcycle taxes for a large portion of the national vehicle fleet. Giorgia Meloni called the measure "one of the taxes most hated by Italians" and emphasized that, while the debate focuses on other taxes, the country is choosing to ease the burden on vehicle ownership.
Who can benefit from the exemption and what is the technical limit?
According to Article 2 of the decree-law, the exemption will be effective throughout 2027 and will apply to individuals who meet the required requirements. The threshold is set at 80 kW of maximum power, or approximately 109 hp, and applies to gasoline or diesel vehicles , including hybrids, as long as the power rating does not exceed it.
Only one insured vehicle per taxpayer can be exempted; if the taxpayer owns multiple eligible vehicles, the exemption applies to the one with the lowest power output or, in the event of a tie, to the one with the lowest road tax.
Rules for motorcycles and mopeds
For two-wheelers, the rule is similar: all combustion-engine motorcycles and mopeds are included, but the exemption is granted only if the owner does not already pay the road tax for a car up to the 80 kW limit.
Here too, a single benefit is granted per citizen. The extension also applies to regions with special statutes and autonomous provinces, subject to prior agreement with local authorities.
Financial impact and compensation to the Regions
The reduction in tax revenue is offset by a transfer from the State to the Regions amounting to €2.293,5 million for 2027. The overall costs of the intervention are estimated at €2,362 billion . For context, the previous year, the car tax had raised €7,1 billion, with an average of €267 per family; including the PRA tax and third-party liability insurance, the total burden exceeded €11,3 billion, or approximately €424 per family.
Car models that fall within the 80 kW threshold
Most city cars and medium-powered mini-SUVs are exempt. Common vehicles include:
- Fiat Panda mild-hybrid versions 1.0 (approx. 70 hp, 51-52 kW) and older versions.
- Dacia Sandero/Stepway SCe 65 (≈48 kW), TCe 90 (≈66 kW) and TCe 100/ECO-G 100 (≈74 kW) engines; the most powerful hybrids exceed the limit.
- Citroën C3 PureTech 100 (≈74 kW) and Hybrid 110 (thermal power around 74 kW).
- Peugeot 208 PureTech 75 (≈55 kW) and 100 (≈74 kW); the more powerful hybrid versions (136/145 hp) and the electric ones are excluded.
- Fiat Grande Panda 1.2 petrol with 100 HP (≈74 kW) and mild-hybrid 110 HP (≈81 kW, at limit).
- Renault Clio TCe 90/100 (≈66-75 kW); the TCe 115 or full-hybrid 145/160 HP versions are not included.
- jeep avenger 1.2 turbo 100 hp (≈74 kW) is permitted; 4xe and electric versions (115 kW) are excluded.
- Toyota Yaris e Yaris cross entry-level: the 116 hp (≈85 kW) full-hybrid models are at the upper limit.
- Other models typically under 80 kW: Fiat 500 for sale (thermal and mild), Lancia YpsilonKia PicantoHyundai i10Opel Corsa entry, Volkswagen Polo 1.0 base, Suzuki SwiftSkoda Fabia entry.
- Le pure electric city cars like the Fiat 500e (70 kW), Leapmotor T03, Dacia Spring and BYD Dolphin entry-level models; the more powerful versions do not benefit from the exemption for combustion engines.
The measure also applies to numerous used vehicles between 10 and 20 years old, as long as their power remains below the established threshold.
The exemption will apply only to 2027; there is no automatic extension for subsequent years, allowing the government to assess the actual reduction in the tax burden and the impact on regional budgets. The measure, although limited, is considered an important step toward overhauling the car tax system, especially for families who use small and medium-powered cars and motorcycles on a daily basis.