12/31/2018

Italy Plans Taxes on Gas Guzzlers, Subsidies for “Green” Cars

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Italy’s parliament has approved  incentives on fuel-efficient vehicles and higher taxes for new cars with poor fuel economy and high carbon dioxide emissions.

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Italy’s parliament has approved plans pay incentives on fuel-efficient vehicles and raise taxes for cars with poor fuel economy and high carbon dioxide emissions, Reuters reports.

The measures, which await approval of the lower house, would take effect on March 1 and continue through the end of 2021.

Reuters says the proposed measures would pay buyers of new low-emission vehicles as much as €6,000 ($6,900). An array of incentives for hybrid and all-electric vehicles will be indexed to emissions and apply to vehicles that cost no more than €50,000 ($57,200).

The scheme also would impose gas-guzzler taxes on new gasoline and diesel cars, depending upon their CO2 emissions. The planned fees would range from €1,100 ($1,300) for vehicles that emit between 161 and 175 grams per kilometer to €2,000 ($2,300) for those that generate 201-205 g/km.

Italy’s auto industry opposes the latter tax. It says the fees will hurt sales, disrupt the sector’s supply chain and threaten employment.


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