Beginning in January 2027, the Italian Council of Ministers has approved a decree exempting vehicles with engines up to 80 kW—equivalent to roughly 109 horsepower—alongside all motorcycles, from the annual automobile tax known as the bollo auto. According to government data reported by Motor1.com Italia, this policy targets approximately 14,5 million vehicles, covering over 70% of the country’s active automobile fleet.
The Bottom Line
- Target Scope: The 2027 exemption applies strictly to gasoline, diesel, and hybrid passenger vehicles rated at or below 80 kW, identified under line P.2 of the vehicle registration document.
- Fleet Impact: Ministry of Infrastructure and Transport (MIT) figures indicate that vehicle owners across Italy stand to capture direct cost-of-living relief under the decree.
- Regional Friction: Because the vehicle tax is levied at the regional level in Italy, local implementation and potential budget offsets remain operational hurdles for regional administrators.
Decoding the 80 kW Threshold Across European Automakers
Here is the math. The newly enacted exemption applies exclusively to the specific motorization of a vehicle rather than an entire model range. Vehicle owners must verify that their displacement and kilowatt output, listed under section P.2 of their registration card, do not exceed the 80 kW cap. For instance, high-volume entries such as the Fiat (BIT: STLAM) Panda mild hybrid 1.0 operating at approximately 70 CV cleanly clear the threshold, whereas certain higher-output trims sit directly on the boundary line.
The measure encompasses internal combustion engines fueled by gasoline or diesel, including hybrid variants sharing those primary propulsion types. Conversely, 100% battery-electric vehicles remain excluded from this specific tax relief framework because they operate under a distinct regulatory regime managed separately from standard combustion powertrains.
| Manufacturer & Model | Engine Variant | Estimated Power Output | Tax Status (2027) |
|---|---|---|---|
| Fiat Panda / Pandina | Mild Hybrid 1.0 | ~70 CV (~51-52 kW) | Exempt |
| Dacia Sandero | SCe 65 / TCe 90 | ~48 kW to ~66 kW | Exempt |
| Toyota Aygo X | 1.0 Liter | 72 CV (53 kW) | Exempt |
| Jeep Avenger | 1.2 Turbo Gasoline | 74 kW | Exempt |
Macroeconomic Transmission and Regional Fiscal Pressures
But the balance sheet tells a different story regarding public administration revenues. Because the bollo auto functions as a decentralized revenue stream managed autonomously by Italy’s regional governments, exempting more than 70% of circulating cars introduces an immediate funding gap for local budgets.
Verifying Compliance and Avoiding Administrative Penalties
Automotive associations emphasize that vehicle owners must not rely solely on commercial model marketing names when assessing their tax liability. Because manufacturers frequently offer identical models with multiple engine tunings, variations in horsepower can push a single trim level across the statutory limit. Drivers must cross-reference their physical registration certificates against the Ministry of Infrastructure and Transport parameters before assuming exemption status.
Furthermore, the current decree confines this tax holiday strictly to the 365 days of calendar year 2027.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
