Goa slashes road tax by 50% to boost struggling auto sector
The tax reduction comes ahead of the festive period and is expected to boost demand. Given its temporary nature, the cut is expected to push those stalling on purchasing a vehicle over the line.Updated: Oct 01, 2019 10:10 IST
The Goa government has slashed road tax on purchases of new vehicles for a period of three months, in a bid to help the struggling auto industry.
Goa transport minister Mauvin Godinho announced that road tax has been slashed by 50% for three months.
Manoj Caculo, the president of the Goa Chamber of Commerce and Industry, said he expected a significant boost in auto sales after the government’s move.
“We were witnessing a de-growth of 25% in the sales of vehicles— both cars and two wheelers. We had made a representation to the government to reduce the road tax by 50% up to the end of the financial year,” Caculo said.
Caculo said the tax cut will lead to the overall decrease in the prices of vehicles.
The tax reduction comes ahead of the festive period and is expected to boost sentiment as well as demand. Given its temporary nature, the tax cut is expected to push those stalling on purchasing a vehicle over the line.
Much like the rest of the country, sales of vehicles witnessed a slowdown in the coastal state. Goa has a vehicle population of 13.82 lakh as of January this year while the state’s population is in the region of 16 lakh. Goa has earned an annual revenue of around Rs 200 crore through road tax and registration of vehicles.