Goa Government Reduces Road Tax By 50% To Promote New Vehicle Sales

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Between October and December 2019, the road tax for new vehicles sold in Goa has been reduced by about 50 per cent

The government of Goa has elected to reduce the road tax by a massive rate of 50 per cent to promote the sales of new vehicles in the Southwestern coastal territory. The new regulation will be in effect for a total of three months to boost the sales prospects in the two- and four-wheeler sectors. The move was confirmed by State Transport Minister, Mauvin Godinho, yesterday.

The big reduction in tax could help instigate sales during the festive season months of October, November and December. In the state, the current financial year between April and July 2019 saw a drop in vehicle registration of 15 to 17 per cent as a total of 19,480 units were registered during this period. The existing scenario sees the two-wheelers priced up to Rs. 1.5 lakh come under the tax slab of 9 per cent of the vehicle cost.

For the two-wheelers ranging between Rs. 1.5 lakh and Rs. 3 lakh, the tax levied is 12 per cent while the ones carrying sticker tag of above Rs. 3 lakh are categorised under 15 per cent tax category. As for the four-wheelers, the tax rate is 9 per cent if they cost up to Rs. 6 lakh. However, for those being priced up to Rs. 10 lakh, it mounts to 11 per cent.


The four-wheeled vehicles costing between Rs. 10 lakh and Rs. 15 lakh carry tax rate of 11 per cent and above which, about 13 per cent is charged on the individual vehicle’s cost. The congress party criticised the move by stating that the BJP government has squandered in economic management while admitting the 50 per cent tax reduction would benefit any common buyer.

The two- and four-wheeler industries are running through a difficult patch through 2019 with massive slowdown in volume numbers even for the top-selling models and brands. Undeterred, they are hopeful of progress during this festive season as attractive discount offers, schemes and benefits are provided across the board.

If more states would come in and reduce taxes, the auto industry could be positioned in a positive path of recovery as the BSVI deadline of April 2020 looms large.