Italy to Scrap Road Tax for 14.5 Million Vehicles Ahead of Election

Italy's government is scrapping road tax for 14.5 million cars and motorbikes, Prime Minister Giorgia Meloni announced on Wednesday, in a move that comes as her administration looks to shore up support before a national election next year.

"Today, the government is eliminating one of the taxes most hated by Italians," Meloni said in a statement issued by her office.

The relief will cover all motorbikes and more than 70% of small and medium-sized cars. Each citizen, however, will be able to claim the benefit for only one vehicle, the cabinet office said.

The government did not disclose the cost of the measure to public finances.

Next year's election is expected to be a closely contested race between Meloni's rightist coalition and the centre-left opposition.

According to its most recent budget plan, which is due to be updated in the coming weeks, Italy expects its public debt to peak at nearly 139% of gross domestic product this year, overtaking Greece as the most indebted country in the euro zone.