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What you need to know about Italy’s new ‘green’ car bonus

As Italy's government finalises a new round of incentives for the purchase of low-emission vehicles in a bid to tackle pollution, here are the very first details about the upcoming measures.

Published: 5 January 2024 12:28 CET
Electric SUV, Italy
An MG electric SUV charges at a hub in downtown Milan in March 2023. Photo by GABRIEL BOUYS / AFP

The measure, which was proposed by Minister of Enterprise and Made in Italy Adolfo Urso, would enable access to contributions for non-polluting cars such as electric and hybrids.

The proposed incentives, which Urso is preparing to launch, come after electric cars in Italy accounted for only 4.2 percent of Italian market sales, sector group ANFIA said on Tuesday.

“We think we can be ready with the Prime Ministerial Decree by January. The Automotive Fund has a total availability of six billion until 2030,” Urso told national newspaper Sole 24 Ore last month.

He also said that the incentives would not be restricted to electrical and hybrid vehicles: petrol and diesel cars would also be included provided they have a CO2 per kilometre range of 61 to 135 grams.  

“We also want to increase the incentives for families with an economic indicator (ISEE) of under € 30,000, provided they scrap a Euro 2 car,” he continued.

As it currently stands, the plan has yet to be passed, despite Urso saying the decree would be ready by January. Nevertheless, according to a working draft seen by ANSA, the government aims to use €930 million, including €570 million of new automotive funds, towards the cause. 

Other proposals include aid for the purchase of a hybrid car ranging from €4,000 to €10,000 and low-emission cars ranging from €1,500 to €3,000. The incentive would also apply to commercial vehicles, taxis and long-term rentals.

The scheme is not the first of its kind; it ran last year with a fund of €650 million in total. Some €250 million were allocated for electric cars, €220 million for plug-in hybrid cars and €170 million for low-emission endothermic cars.

The new provisions are due to be discussed in a meeting chaired by Urso on February 1st.

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MONEY

Can businesses in Italy legally refuse card payments?

Despite an increase in electronic transactions in recent years, Italy is still a cash-reliant economy – but can shops in the country actually turn down card payments?

Published: 9 May 2024 13:50 CEST
Can businesses in Italy legally refuse card payments?

Though the use of electronic payments has significantly increased in recent years – the value of cashless transactions recorded a 13-percent year-on-year increase in the first half of 2023 – Italy is still one of the most cash-reliant economies in the world. The country ranked 28th out of 144 nations in the 2024 Cash Intensity Index published by the Cashless Society Community think-tank.

And while an increasing number of shops, cafes and tabaccherie (tobacco shops) around the country accept card payments, producing a debit card or mobile phone to pay for an espresso may still be met with a pained expression and a solo contanti (‘cash only’) request in some parts of the country.

But can businesses in Italy lawfully turn down card payments? 

From a legal point of view, there seems to be very little room for confusion.

Under Article 15 of Decree 179/2012, all businesses offering items or services to the general public are required to accept card payments of any amount from at least one type of credit card, one type of debit card and prepaid cards.

READ ALSO: Can I open a bank account in Italy as a non-resident?

In November 2022, Giorgia Meloni’s administration proposed a law amendment allowing merchants to refuse card payments for amounts under 60 euros, but the plan was later scrapped following pressure from the EU. 

The requirement applies to all kinds of businesses dealing directly with the public, including: 

  • Shops and street vendors
  • Blacksmiths, carpenters and plumbers
  • Accountants, notaries and lawyers
  • Healthcare professionals
  • Restaurants, bars and cafes
  • Hotel, B&B and guest houses

As of June 30th 2022, there are also penalties for non-compliance, with businesses caught refusing card payments facing “a 30-euro administrative fee plus four percent of the value of the transaction previously denied” unless they can prove that their point-of-sale terminal had a malfunction.

For instance, in the case of a 100-euro transaction, the merchant who did not accept payment by card is liable to receive a fine equal to 34 euros (30 plus 4, i.e. 4 percent of 100).

Having said that, while the law does compel business owners to accept card payments and fines are in place for those flouting the rules, the extent to which the requirement has been enforced so far remains unclear, with some shops in the country still insisting on cash-only transactions, especially for small sums.

READ ALSO: What is Italy’s marca da bollo and how do you get one?

The enforcement of any rules involving electronic payments is up to Italy’s financial police (Guardia di Finanza).

Customers who are denied the option of paying by card can report the business in question to the police by calling the Guardia di Finanza at toll-free number 117 or alternatively by filing a report at the nearest station.

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