Italy cancels road tax for 14.5 million cars and motorcycles: in Greece, road taxes still remain

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Italy will abolish annual road tax for about 14.5 million cars and motorcycles from 2027 – in the background high fuel prices Giorgi Meloni’s government decided to remove one of the most unpopular fees for vehicle owners.

We’re talking about Italian bollo auto — an annual tax on vehicle ownership, which in its logic is close to the Greek τέλη κυκλοφορίας. The decision was approved by the Italian government on September 16 and should begin to apply from 2027.

Who will be exempt from tax?

According to ANSA and Reuters, the exemption applies primarily to small and medium carswhich families use for daily trips.

For passenger cars, a power limit applies – up to 80 kW. The measure also applies to motorcycles. In this case, one person will be able to use the exemption only for one vehicle.

In total, approximately 14.5 million cars and motorcycles. This is more than 70% of the small and medium-sized cars currently on the roads in Italy.

How much will owners save?

Italian consumer organization Altroconsumo has calculated that for most popular small cars the actual savings would be approximately from €113.52 to €141.90 per year.

For example, for a Fiat Panda or Fiat 500 we are talking about about €132 annually, for a Renault Clio about €124, and for a Peugeot 208 or Citroën C3 about €142.

At first glance, the amounts do not look huge. However, when combined with high prices for gas, insurance, maintenance and parking, eliminating the constant annual payment becomes a significant savings for the family.

Meloni: the measure should become permanent

On September 17, Prime Minister Giorgia Meloni separately stated that this is not just a one-time benefit for 2027. According to her, the government views the abolition of the tax as structural and permanent measure.

At the same time, the financial side of the decision is already causing controversy. Reuters estimates that scrapping the tax would cost government finances more than €2 billionand sources of long-term coverage of these costs still remain one of the key issues.

Italy reduces fuel load at the same time

The decision was made against the backdrop of rising energy costs. The Italian government is simultaneously continuing temporary measures to reduce the tax burden on fuel. The total cost of such support, according to Reuters, is already approaching €2.8 billion.

That is why the abolition of bollo auto is not seen in isolation, but as part of a broader policy to reduce costs for car owners.

What’s happening in Greece

For the Greek motorist, Italy’s decision is especially interesting now that fuel prices in Greece are again breaking records. As Athens News has already written, on the islands diesel in some places is close to €2.60and gasoline 98–100 octane is almost €2.75 per liter.

At the same time, in Greece the annual τέλη κυκλοφορίας continue to operate. The amount of the tax depends on the date of first registration of the car, engine size or CO₂ emissions.

Official service myCAR Independent Directorate of State Revenue AADE allows you to download a tax notice, check the debt, transfer the car to digital “immobility” and, if necessary, pay the fee only for individual months of operation.

For older cars, Greek annual fees can be quite significant. According to the current table AADEfor some cars with displacement engines they exceed €1,000 per year.

There is no complete cancellation in Greece yet

As of September 17, the Greek government did not announce the general abolition of τέλη κυκλοφορίας according to the Italian model. The discussion is primarily focused on measures against the high cost of fuel – a possible new Fuel Pass, changes in the excise tax and assistance to certain categories of citizens.

Thus, the approach of the two countries is still different. Italy has decided to reduce the fixed costs of owning a car for millions of citizens, while Athens is still considering primarily targeted interventions directly in the cost of fuel.

There is also a downside

Rome’s decision received more than just support. Opponents of the government and a number of economic organizations point out that Italy already has one of the largest public debts in the eurozone – about 139% GDPand the constant reduction in tax revenues will require compensation to be found in other budget items.

The final assessment of the measure will therefore depend on how the government finances the loss of more than €2 billion in annual revenue and whether the exemption is indeed maintained permanently.

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