Italy has announced that it will offer grants worth up to 6,000 euros to buyers of environmentally friendly vehicles and impose higher taxes on larger vehicles running on traditional fuels.
The measure was approved in the upper house of the Parliament and are contained in the budget proposals of the country in 2019.
Plans to tax cars with internal combustion engines has been criticized in the automotive industry and labor unions and the automobile Association warned that the proposed taxes may harm the manufacturers and reduce the number of jobs.
The parties have agreed on adapted measures, which means that the proposed taxes will not apply to small cars with internal combustion engines whose CO2 emissions do not exceed 160 grams per kilometer.
Petrol and diesel cars, which produce 161-175 grams of CO2/km will be taxed at 1100 euros for emissions 176-200 grams CO2/km to 1600 euros to 2,000 euros for emissions 201-250 grams of CO2/km.
Incentives for electric cars and other environmentally friendly vehicles do not apply to all models. The ones that cost more than 50,000 euros, will not qualify for a subsidy, but the benefit amount will vary from the amount of produced emissions.
Italy electric and hybrid cars make up about 7% of car sales, according to data provided by Association of manufacturers of foreign cars UNRAE.
The main car manufacturer in Italy, Fiat Chrysler currently sells electric and hybrid cars in the country or in Europe.
Fiat Chrysler, meanwhile, announced that it plans to spend more than 5 billion euros for the development of new electric and hybrid models and engines in the period from 2019 to 2021. Of course, the automaker may revise its investment plan, if Rome will raise taxes on gasoline and diesel cars.
We will remind, in the summer, the mayor of Milan announced the beginning of the ban of diesel vehicles in the city.