Rome – The Italian government confirmed on Thursday that the road tax – known locally as the bollo – will be scrapped for small‑ and medium‑power passenger cars and for every motorcycle, with the change slated to begin in 2027. The decision, unveiled by Prime Minister Giorgia Meloni, is presented as a flagship measure of the ruling coalition ahead of the upcoming national election.
Policy details and scope
The decree targets roughly 14.5 million vehicles, encompassing all two‑wheelers and cars whose engines fall below the thresholds that define “small” and “medium” power – categories that together represent the bulk of Italy’s private vehicle fleet. According to multiple Italian outlets, the tax has long been described as one of the most unpopular fiscal instruments, a sentiment echoed by Meloni herself.
“Goodbye to one of the most hated taxes,” Meloni said, adding that the reform would be maintained for the duration of the parliamentary term.
While the exact power cut‑offs were not detailed in the English‑language reports, the measure applies uniformly across the nation, eliminating the annual registration fee that owners previously paid to the Ministry of Infrastructure and Transport.
Political backdrop
Meloni’s administration is navigating a politically charged environment, with the next general election scheduled for later this year. Analysts cited by Bloomberg and Reuters argue that the tax abolition is a calculated effort to bolster the centre‑right coalition’s appeal to middle‑class voters who own modest‑size cars or motorcycles.
The move aligns with a broader narrative from the prime minister’s office that emphasizes “tax relief” and “support for citizens’ purchasing power.” Government spokespeople have framed the policy as a fulfillment of campaign promises to reduce the cost of living, especially for those most affected by the fuel and energy price spikes that have strained household budgets.
Critics, though not detailed in the consolidated reports, have warned that the loss of revenue could widen Italy’s fiscal deficit, which has already been a focal point of European Union scrutiny. The finance ministry has not disclosed the projected shortfall, but the decision follows a series of tax‑cut proposals that aim to stimulate domestic demand.
Implementation is expected to be phased in over the next few years, with the tax removal becoming operative from the start of 2027. The government has indicated that the reform will be reviewed at the end of the current parliamentary term to assess its fiscal impact and popularity among voters.
Overall, the abolition of the bollo for a large segment of the vehicle market marks a significant shift in Italy’s tax policy, reflecting both domestic political calculations and a response to widespread public dissatisfaction with longstanding levies.
