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Saturday, Aug 24, 2019

Goa govt may reduce taxes for registering new vehicles

Speaking in the Goa Legislative Assembly on Wednesday, chief minister Pramod Sawant said that in the past Goa had a lower tax rate compared to other states which led to owners getting their cars to the coastal state for registration.

india Updated: Jul 31, 2019 16:35 IST
Gerard de Souza
Gerard de Souza
Hindustan Times, Panaji
Goa chief minister Pramod Sawant
Goa chief minister Pramod Sawant (PTI file photo)
         

The Goa government is exploring the possibility of lowering the tax on registration of vehicles to attract buyers from other states.

Speaking in the Goa Legislative Assembly on Wednesday, chief minister Pramod Sawant said that in the past Goa had a lower tax rate compared to other states which led to owners getting their cars to the coastal state for registration.

“If we lower the tax, people will once again come in large numbers to register vehicles in Goa. It can be a revenue source. We are examining the issue,” Sawant said.

The Goa government has been exploring ways to help shore up its revenues as tax collections have taken a massive hit since the implementation of the Goods and Services Tax (GST) regime two years ago.

As of today the state government, has received a ₹502-crore compensation package from the central government to tide over the revenue shortfall on account of GST. Goa being a consumer state and not a manufacturing one, tax collections have dropped over the last few years.

The constant changing of the GST tax slabs has also not helped the state that used to depend largely on revenue earned from VAT charges.

The Goa government has already asked that the period of compensation provided by the Centre to states that witness a shortfall in GST revenue be extended up to 2022.

First Published: Jul 31, 2019 16:35 IST

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