Road tax reduction pays back government

Revenue up by 7%; Sale of four-wheelers up by 81%

PANJIM: The State government’s decision to reduce road tax for the last quarter of 2019 has boosted State revenue by nearly 7 per cent. Provisional figures before reconciliation released by Transport Department indicate that the sale of four-wheelers shot up by an impressive 81 per cent, while two-wheelers saw a 6 per cent rise. 
“The sale of vehicles from October to December 2019 increased to 15,188 from 14,323 vehicles registered during the corresponding period in 2018, whereas the sale of four-wheelers increased to 8,264 from 4,559 in the respective period. This has upped revenue by 7 per cent,” Transport Director Rajan Satardekar told Herald.
The government has earned a total of Rs 5,281.56 lakh during the last three months of 2018, as against Rs 4,939.32 in the previous corresponding period. On the revenue front, there was, however, a drop in the tax collection on two-wheelers. 
The Pramod Sawant-led government had slashed road tax by 50 per cent on the purchase of new vehicles in a bid to boost auto sales, which had dropped. The decision was also taken as the State recorded a 15 to 17 per cent decline in registration of new vehicles, during the first four months of the current financial year.
The opposiiton had then come down heavily on the government, citing an economic crisis, even as the decision could help people afford paying the road tax. Questions were also raised on the increased number of vehicles plying on Goan roads with the number rising during the peak tourist season. 

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