Car on beautiful Italian road. Photo: WildSnap / Shutterstock Italy is introducing temporary relief on diesel prices while preparing a 2027 exemption from the country's vehicle tax for eligible cars and motorcycles, under a new decree approved by the Council of Ministers.
The measures come as the government responds to continued increases in fuel costs. For motorists, the immediate change is a reduction in diesel excise duty, while the larger tax measure will take effect next year.
From September 18 to 25, the reduction in diesel excise duty, including the related VAT effect, will amount to 12.2 cents per liter. From September 26 through October 5, the reduction will fall to 6.1 cents per liter. The measure also initially covers certain paraffinic diesel fuels and biodiesel used as motor fuel.
The government is also extending existing support for road haulage as part of the package.
A separate measure will exempt eligible motorists from Italy's vehicle tax, commonly known as bollo auto, during 2027.
The exemption applies to individuals with a petrol or diesel car, including hybrids, with a power output of no more than 80 kW. It applies to one eligible vehicle. If a person owns more than one qualifying car, the exemption applies to the vehicle with the lowest power output.
People who do not have an eligible car can instead benefit from the exemption for one motorcycle or moped, under the conditions set out in the decree.
The measure also covers the special-statute regions and autonomous provinces, subject to agreements because vehicle tax is administered at the regional level. The central government will provide transfers to compensate the regions and autonomous provinces for lost revenue.
The exemption is currently established for 2027. The government has said it intends to make the abolition structural through a future budget law, but the current decree establishes the exemption for 2027.
For people driving in Italy, the diesel reduction is immediate but temporary. The reduction is 12.2 cents per liter through September 25 and 6.1 cents per liter from September 26 through October 5, unless further measures are introduced.
Tourists can also benefit from the temporary diesel tax cut if they rent and drive a diesel vehicle, as the measure reduces the tax included in the fuel price. However, the 2027 vehicle-tax exemption is different. It concerns eligible vehicles subject to Italy's bollo auto and does not directly apply to tourists renting a car.
The decree does not require rental companies to pass either tax measure directly on to customers through lower rental rates. Any effect on rental prices would therefore depend on how individual companies price their vehicles and operating costs.
Commenting on the measure, PM Giorgia Meloni said: "Today in the Council of Ministers, we approved the abolition of the stamp duty for small and medium-powered cars, up to 80 kW, and for motorcycles, with an exemption for one vehicle per citizen.
We have chosen to transform a portion of the resources used so far against rising fuel prices into a simple and structural measure, designed especially for those who use cars and motorcycles every day to work, take their children, or get around.
A concrete choice: we are eliminating one of the taxes most hated by Italians and continuing on the path of reducing the tax burden. While others talk about wealth taxes, we are removing a tax on property."