The Italian government is considering introducing a new tax aimed at penalising big polluting cars such as Sports Utility Vehicles (SUVs).

Italy's environment minister Altero Matteoli has announced that he is mulling over proposals to fund incentives for more environmentally friendly models in a move that could herald a concerted effort to deliver a greener automotive agenda.

Speaking in the Corriere della Sera newspaper, the minister claimed: "Taxing SUVs would not only be a tax on pollution but also on causing traffic jams."

Italy is currently working on a plan to tax cars depending on their pollution levels, with reference to their engine size, registration year and what type of fuel they use.

Italian manufacturer Fiat could benefit from such a scheme thanks to its range of smaller vehicles and fuel-efficient Multijet diesel engine.

When France attempted to introduce similar taxes earlier this year Germany forced the plans to be put on hold by arguing they unfairly protected companies that make smaller cars, which do not produce as many emissions.