The Council of Ministers has authorized the elimination of the automobile and motorcycle tax for small and medium-powered vehicles, with the goal of assisting families with daily commuting. The tax exemption will apply to more than 70% of automobiles on the road in Italy, totaling nearly 14.5 million vehicles at a cost of €2.36 billion. The benefit will apply to individuals for 2027, with one strict limitation: each citizen will be entitled to an exemption for just one vehicle, which must be properly insured. The exemption applies to payments due between January 1 and December 31, 2027. For cars, the discount applies to petrol or diesel vehicles, including hybrids, with a power output of no more than 80 kW. If numerous qualified cars are owned, the exemption is granted to the one with the lowest power output or, for the same kW, the one with the lowest tax amount. For motorcycles and mopeds, the exemption applies to gasoline or diesel vehicles, as long as the owner does not possess any cars with less than 80 kW. If a person owns numerous motorcycles, the one with the lowest power takes precedence; for mopeds, the oldest registration takes precedence. The estimated €2.29 billion loss of tax revenue designated for Regions and Autonomous Provinces will be offset by savings from the National Recovery and Resilience Plan (NRRP), which will be derived from grants and loans that have not been utilized by June 30, 2026. The draft decree formally restricts the measure to 2027 for technical and emergency reasons. However, government sources have confirmed that the reduction will become structural, with its final implementation set for the upcoming Budget Law.