Meloni Scraps Road Tax Ahead of Elections

The Italian government will abolish the road tax for 14.5 million cars and motorcycles. Prime Minister Giorgia Meloni announced the move on Wednesday as her cabinet seeks ways to boost support ahead of next year's parliamentary elections.

"Today, the government is eliminating one of the taxes most hated by Italians", the prime minister said in a statement.

The exemption will apply to all motorcycles and more than 70% of small and medium-sized cars. However, each citizen will be able to claim it for only one vehicle.

According to current projections, next year's election will turn into a close race between the prime minister's right-wing coalition and the opposition.

The cabinet did not specify how much the tax repeal will cost the public treasury. According to the latest budget plan, which the government is set to update in the coming weeks, Italy's public debt will peak this year at nearly 139% of gross domestic product. Italy will thus replace Greece as the most indebted country in the eurozone.

(Reuters, bak)