the goan I network
PANAJI
In news that would bring cheer to the automobile industry in the State, the Goa government on Monday decided to waive off 50 per cent of road tax on all types of vehicles.
The decision will be applicable for the next three months -- October, November and December.
Disclosing this, Transport Minister Mauvin Godhino said, “many States in the country have given such concession... this decision will surely give a boost our economy”.
Although the government has not yet notified the reduction in road tax, the transport minister said the file has been moved for approval. He also disclosed that the tax concession will be for all vehicles including commercial ones.
As per statistics in the economic survey 2018-19 on an average 80,000 vehicles are registered every year. As on December 31, 2018 around 13.82 lakh vehicles had been registered in the State. Out of the registered vehicles, 71 per cent are two-wheelers and 22 per cent four wheelers.
Meanwhile, auto dealers heaved a sigh of relief as they had been urging the government to reduce the road tax for the last two months.
Throughout 2019, auto dealers in the State faced worst slowdown, as sales of two-wheelers and cars had
declined by a massive 40 per cent. Certain dealerships also had to shut and in some cases even people working in dealerships were displaced.
Prashant Joshi, president, Goa Automobile Dealers Association (GADA), said, “It is a really good move on the part of the government to reduce road tax by 50 per cent. Earlier, the decline in sales was due to poor sentiment. We think that the reduction in tax will revive the sentiment and we will be able to recover sales in the next three months.”
The automobile sales started suffering in 2016 itself when demonetisation was announced. After that
Goods-and-Services-Tax (GST) was rolled out in 2017. Post which, pan-India economic slowdown
started, which resulted in people having lesser money in their hands to spend on cars and bikes.
Evencio Quadros, chairman and managing director, Quadros Motors, said, “I’d say it is a good move to reduce the road tax. But full recovery in auto sales will happen only if the government finds a way to remonetise the economy. People had lost money due to demonetisation. Unless they are given money back, the revival will not be strong.”
Only the next three months will show whether people buy automobiles in significant number or not.
Sources said that there are people, who will buy cars and bikes, just to take the advantage of dip in road tax. However, those who don’t have money due to economic downturn will still not be able to buy.
