The 50 per cent reduction in road tax for new vehicles will come into effect for three months, with an aim of boosting the domestic auto industry amid the sales slowdown.
The Goa Government has already decided to slash the road tax for new vehicles by a massive rate of 50 per cent, aimed at promoting car sales in the South Western coastal area. Confirmed by the Transport Minister, Mr Mauvin Godinho on Tuesday, the reduced tax rate will be applicable during three months - October, November and December to push the sales momentum of the two-wheeler and four-wheeler segments.
The Indian auto industry has been witnessing a difficult time with the massive sales drop in over 18 years.
According to an official of the transport department, during the first four months of the current FY, there is a significant drop of 15 – 17 per cent in the overall vehicle registration of the state. In fact, there were only 19,480 takers from April to July 2019.
The existing sales scenario sees two-wheelers priced up to Rs 1.5 Lakh are charged 9 per cent tax of the vehicle while those in the range of Rs 1.5 – 3 Lakh come under the tax slab of 12 per cent. That would be raised to Rs 15 per cent tax for vehicles carrying the price sticker of Rs 3 Lakh onwards. For the four-wheelers, the tax levied is 9 per cent for those costing up to Rs 6 Lakh. For vehicles which are priced above Rs 6 Lakh and up to Rs 10 Lakh, the tax rate mounts up to 11 per cent. Over and above, the four-wheelers getting the price bracket of around Rs 10 – 15 Lakh will stick to 11 per cent tax rate, which would mount up to 13 per cent for those sitting above it.
Goa Govt has recently reduced the road tax rate by 50% for new car buyers, in a bid to push the car sales of the state.
Commenting on this movement, the Congress party said that the 50 per cent cut tax would benefit any common buyer but it shows that the Government has failed in the economic management as well.
The two-wheeler and four-wheeler sectors are experiencing a tough phase in recent times with a massive sales slump, even for best-selling products and brands. Hopefully, they are looking to find a way out during the festive season thanks to lucrative promotional campaign with discount and benefits offered across the board. Possibly, that’s could be a positive path for other states when the BSVI emission norms loom large.
Road Tax - Goa Motor Vehicle Taxation Act
Up to Rs 1.5 Lakh
9% of vehicle cost
Above Rs 1.5 Lakh - Rs 3 Lakh
12% of vehicle cost
Over Rs 3 Lakh
15% of vehicle cost
Up to Rs 6 Lakh
9% of vehicle cost
Above Rs 6 Lakh - Rs 10 Lakh
11% of vehicle cost
Above Rs 10 Lakh - Rs 15 Lakh
11% of vehicle cost + infastructure cess of Rs 15,000
Above Rs 15 Lakh - Rs 35 Lakh
13% of vehicle cost + infrastructure cess of Rs 50,000