Italy approves gas-guzzler tax opposed by auto industry

Italy will offer subsidies of up to 6,000 euros ($6,820) to buyers of new low emission vehicles while putting taxes on the purchase of larger gasoline and diesel cars, according to measures approved in parliament.

The measures were contained in Italy’s 2019 budget passed by the upper house. They change rules proposed by Rome earlier in December, which drew criticism from the car industry.

Unions and auto sector associations have warned about the proposed new tax, saying it could hurt not only automakers but also the entire supply chain and could cost jobs.