The Italian parliament approved a €3,500 ($3,962) incentive package to scrap cars that are at least 10 years old in exchange for new vehicles.
Italy joins France and Germany in the EU’s attempt to improve new car sales after they declined by 41.5pc in the EU during the the first five months of the year. The Italian market had a 49.6pc decrease in sales in May alone. The package is includes electric vehicles (EVs) and internal combustion cars, which meet the Euro-6 emission norms.
The move is aimed at helping the Italian automotive industry recover from slumping sales, which have been attributed to the pandemic. Existing subsidies for EVs are also being strengthened.
The incentives apply to cars worth €40,000 or lower in value. The country’s internal tax structure has also been amended to make older car-owners to pay higher taxes.