The so-called “eco-tax” and “eco-bonus” went into effect on March 1 and will apply until the end of 2021.
The initiative aims to address Italy’s air pollution problem by incentivising people to purchase vehicles which have less of an impact on the environment.
The policy applies to new vehicles purchased and registered in Italy between March 1 2019 and December 31 2021, including those purchased on a loan.
The eco-tax excludes compact economy cars or vehicles that can carry more than eight passengers.
The eco-bonus applies to mopeds, scooters, motorbikes and cars.
A vehicle must produce less than 70 grams of carbon dioxide per kilometre to be eligible for the bonus, while two-wheelers must be electric or hybrid with maximum power of 11 kilowatts and must be replacing a higher-emitting model.
The new vehicle must also be listed at less than €50,000 without VAT.
