The decree containing the new discount on diesel excise duties and the 2027 car tax exemption for cars up to 80 Kw and motorcycles has been published in the Official Gazette and comes into effect tomorrow, September 18. The measure is financed with 2.362 billion cut from the reallocation of funds yet to be distributed, provided by some national chapters and the reserves of some ministries.
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About 14.5 million cars plus motorcycles will be exempt from paying the car tax, with the only caveat that each citizen will be entitled to only one exemption. The cost of the measure can only be calculated with the details at hand: but the order of magnitude is around 2.5 billion, which will have to be compensated to the Regions, recipients of the revenue.
There are 24,608,867 people in Italy who own at least one vehicle with power up to 80 kW and who therefore fall within the group potentially interested in the exemption from paying the car and motorcycle tax provided by the measure approved yesterday by the Council of Ministers. The data was processed by the Ministry of Infrastructure and Transport, through the motor vehicle offices and the Transport department, based on the national vehicle fleet and the number of individuals who own at least one vehicle, allowing for the first time to quantify the potential scope of the measure.
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Overall, over 59 million cars and motorcycles circulate in Italy, of which over 34 million have power up to 80 kW. For 2027, the measure provides exemption from the tax on the first vehicle, without limits related to ISEE. The Government’s goal is to make the measure structural with the next Budget Law.
Car tax decree, 1.698 billion from PNRR savings
The coverage of the decree that exempted medium-small displacement cars and motorcycles from the car tax in 2027 mainly comes from confirmed savings on the PNRR. This amounts to 1.698 billion out of the total approximately 2.3 billion of the measure. Specifically, 200 million allocated for this year, 1.460 billion for 2027, and 38 million for 2028. The resources are indicated in a table attached to the decree with the items for the individual PNRR measure codes. Article 7, containing the resources to finance the decree, then provides for the use and reallocation of funds in a very fragmented way from numerous ministries.
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