Team Herald
PANJIM: In a major decision, the State Cabinet on Wednesday accorded approval for rationalisation of motor vehicle tax for luxury cars by incurring a loss of Rs six crore annually.
As proposed in the State Budget 2017-18, the Cabinet, chaired by Chief Minister Manohar Parrikar, approved the draft ordinance ‘Goa Motor Vehicles Tax (amendment) Ordinance 2017’ to rationalise the levy of the motor vehicle tax collected at the time of registration and also to allow adjustment of tax paid on old four wheelers, over 15 years old, is cancelled, against registration of new vehicle.
“Though, the proposal reduces the rates, it is expected to incentivise the registration of vehicles in Goa itself, thereby enhancing the volume of collections,” the government justified in its cabinet proposal adding that revenue loss to the State would be around Rs 6 crore per annum.
Further, the government states that the proposal to allow carryover period of old four wheelers will incentivise the process of removal of old vehicle technology and its replacement by vehicles which are more fuel efficient and have better technology to comply with emission norms.
As per the cabinet decision, motorcycle or scooter or rickshaw irrespective of its horse power, whose cost does not exceed Rs 1.50 lakh would be taxed 9 percent of cost of the vehicle, whereas motor cycle whose price varies from Rs 1.50 lakh to Rs three lakh will be taxed 12 percent of the cost of the vehicle and above Rs 3 lakh, the tax would be at 15 percent.
Further, in case of motor vehicles belonging to individuals, government will charge registration tax of 9 percent of the cost to the vehicle where the cost does not exceed Rs 6 lakh and 11 percent to the vehicle with cost above Rs 6 lakhs but below Rs 15 lakh.
Similarly, vehicles priced from Rs 15 lakh to Rs 35 lakh would be charged 13 percent of the cost of vehicle and 14 percent in case of those vehicles which are above Rs 35 lakh.
As far as motor vehicles belonging to partnership firms and limited companies with share capital of less than Rs 50 lakh, the government will charge registration tax of 10 percent of the cost to the vehicle where the cost does not exceed Rs 6 lakh and 12 percent to the vehicle with cost above Rs 6 lakh but below Rs 15 lakh.
Similarly, vehicles costing Rs 15 lakh to Rs 35 lakh would be charged 14 percent of the cost of vehicle and 15 percent in case of vehicles which are above Rs 35 lakh.
Further, for those vehicles which are not added in any of the above list (individual or firm), registration tax of 10 percent of the cost to the vehicle where the cost does not exceed Rs 6 lakh and 13 percent to the vehicle with cost above Rs 6 lakh but below Rs 15 lakh.
Similarly, vehicles costing Rs 15 lakh to Rs 35 lakh would be charged 15 percent of the cost of vehicle and 16 percent in case of vehicles which are above Rs 35 lakh.
