Italy debates tax for ICEs and subsidies for EVs
Italy’s governing parties disagree over an amendment to the 2019 budget law that would increase the tax on more polluting combustion engines, while low-emission vehicles would benefit from subsidies of up to 6,000 euros.
Italy’s Lower House Budget Committee approved an amendment to the 2019 budget this week. The amendment will introduce a bonus for people who buy a new electric, hybrid or methane gas-powered car from Jan. 1, 2019. The law also includes a tax surcharge of up to 3,000 euros on the sale of petrol and diesel vehicles.
While the 5-star movement supports this solution, its coalition partners from the Lega are against the planned tax increase. The Lower House is currently discussing “changes to the amendment”, which will be will be discussed again with consumer associations, trade unions and car manufacturers. The 2019 budget should be passed before the end of the year.
In the meantime, the Italian government is still locked in a disagreement with the EU in Brussels about its planned deficit spending policies. The draft budget is causing a sensation at the EU because it is incompatible with Italy’s EU obligations. Needless to say, the government in Rome takes a completely different view of the matter.
Meanwhile, sales of electric, hybrid and methane gas vehicles accounted for seven per cent of Italian car sales in November, according to data comes from the statistics of the UNRAE automobile manufacturers’ association.
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