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Proposed changes to vehicle tax and diesel excise discounts

Vehicle tax would be partially abolished for small and medium-sized cars and motorcycles in 2027, while diesel excise discounts would be reduced. Prime Minister Giorgia Meloni said the vehicle-tax change would become structural.

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What is happening

According to the reports, people with two cars would continue paying the tax on the more powerful vehicle. The reported vehicle-tax cancellation would apply only in 2027, although Meloni promised it would become permanent. The diesel excise discount would fall to 12.2 cents from September 18 to 25 and to 6.1 cents until October 5.

Why is it on the Radar?

The reported measures would change how vehicle tax is calculated for people with multiple vehicles and would affect the costs of owning small and medium-sized vehicles. The reduced diesel discount would also alter the size of the fuel-price relief.

Sources and timeline