Motor Vehicle Tax | ISV


Tax rate

The SB Proposal generally increases (for the cubic capacity and environmental components) the tax rate by about 0.3%.
The tables relating to the environmental component were adjusted to incorporate the transition in the homologation of adaptive consumption and emissions (from the NEDC - New European Driving Cycle to the WLTP - Worldwide Harmonized Light Vehicle Test Procedure).

The SB Proposal also maintains the EUR 500 increase in the total amount of tax payable for light vehicles equipped with diesel propulsion system (EUR 250 in the case of light goods vehicles, open box, closed or boxless, with a maximum capacity of three seats), excluding vehicles showing in their certificates of conformity or, in their absence, in the technical approvals, a particle emission value of less than 0.001 g/km (previously 0.002 g/km).

As for the intermediate rates applicable to cars, the following is stipulated:

  • Express provision in the law for a reduction of the intermediate rate from 50% to 40% (this reduction was already in force in 2019 but was of a provisional nature) for mixed-use light vehicles with a gross weight exceeding 2500 kg, with a minimum capacity of seven seats, including that of the driver, and which do not have permanent or adaptable four-wheel drive;
  • The 40% intermediate rate will no longer apply to light passenger cars using LPG only (it is expected that this intermediate rate will be applied only to light passenger cars using natural gas only).

With the evaluation of tax benefits harmful to the environment, the SB Proposal establishes that light passenger and mixed-use cars that are intended for rental service with a driver and are equipped with engines prepared exclusively for LPG will no longer benefit from the full tax exemption applicable until now.


New specific obligation

Entities engaging in the operational leasing or long-term rental of vehicles will be subject to a new reporting obligation, namely provide to the tax authority the information regarding the tax identification of the users of the leased vehicles, within the period and on the conditions to be regulated by Government ordinance.


Single Road Tax | IUC


Tax rates

According to the SB Proposal, the IUC rates will be increased by 0.3%.


Additional IUC

The SB Proposal maintains the additional CO2 rates applicable to A and B classes diesel vehicles in 2020.