PANJIM: Following a drop in auto sales in Goa, the government has decided to slash road tax to 50 per cent, up to December 31 to boost sales.
Chief Minister Pramod Sawant said, “The major decision is we have decided to reduce road tax up to December 31 for all types of vehicles.”
Information reveals that the registration of vehicles in Goa during the first four months of the current financial year declined by 15-17 per cent. A total of 19,480 vehicles were registered from April to July, 2019.
Transport Minister Mauvin Godinho said car dealers can cash in on the festive season and the government bonanza. “With festivals like Diwali approaching, this decision of the government will help the auto industry,” Godinho said.
Currently, two-wheelers costing up to Rs 1.5 lakh are taxed at 9 per cent of the vehicle cost, while those priced between Rs 1.5 lakh and Rs 3 lakh are taxed at 12 per cent. Vehicles priced more than Rs 3 lakh attract 15 per cent tax.
The tax on four-wheelers costing up to Rs 6 lakh is currently 9 per cent, while the same is 11 per cent for the vehicles costing up to Rs 10 lakh. Vehicles in the Rs 10-15 lakh bracket are charged 11 per cent tax and those above Rs 15 lakh at 13 per cent.
Sources revealed that the State would lose a huge chunk in tax collections once the tax rebate is implemented. “Already the State is in a financial crisis and this move would further burden the exchequer. The loss due to this will be Rs 70 crore,” said a top bureaucrat, speaking to Herald.
However, the official admitted that this will help in more vehicle registrations as some luxury car owners registered their cars in other States due to lower taxes there.
