Vehicles weighing more than 2,600 kilos (5,700 pounds) and certain luxury cars will be subject to higher taxes depending on their power, amounting to nearly double the current rates.

The fee for a Jeep Cherokee, for example, will rise from 412 euros to 732 euros (933 dollars). That for a Mercedes SUV will rise to 1,030 euros, while a Toyota Land Cruiser will be charged 687 euros.

A Rolls Royce Phantom's tax burden will rise from 872 to 1,548 euros, while a Mercedes limousine will cost its owner 1,740 euros next year, from 980 euros.

The tax rise comes as vehicle registrations have fallen for a third consecutive month in Italy, shrinking 3.24 percent in September compared with the same month last year.

The center-left government of Prime Minister Romano Prodi aims to trim Italy's budget deficit by some 33 billion dollars in 2007.

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