Italy's Bold Move: Abolishing Road Tax for Millions

Italy is scrapping the road tax for 14.5 million vehicles in a move announced by Prime Minister Giorgia Meloni. Estimated to cost over €2 billion, the measure is likely to influence voter sentiments ahead of next year’s elections as the government faces political pressure and economic challenges.

Italy has announced the abolition of road tax for 14.5 million cars and motorcycles, a bold financial move by Prime Minister Giorgia Meloni that is expected to cost the government over €2 billion. The decision appears aimed at garnering public support ahead of a national election slated for next year.

The conservative coalition led by Meloni is currently trailing behind the centre-left in opinion polls and is under increasing pressure from National Future, a new far-right party gaining traction. Meloni underlined the popularity of the plan, stating, "Today, the government is eliminating one of the taxes most hated by Italians."

The exemption covers motorbikes and over 70% of smaller vehicles but allows eligibility for only one vehicle per citizen. The policy is set to be in effect for a single year, from January 1 to December 31, 2027. It remains uncertain how the government will finance this initiative with the country's soaring public debt, now pegged to reach 139% of GDP.