the goan I network
VASCO
Stating that a 50% reduction in road tax in Goa had led to an 81% increase in 4-wheeler sales and a 6% increase in 2-wheeler sales between October and December 2019, the Goa Automobile Dealers Association (GADA) also said there had been an overall 7% increase in road tax as compared to the same period last year.
In a press note issued by GADA Secretary Vallabh Kuncoliencar said the bold decision taken by Chief Minister Pramod Sawant and his cabinet had helped the revival of automobile industry in the State.
“In 2019, the Automobile Industry in India went through turbulent times and the sales dropped by 30-40%. Goa also faced similar situation as our sales dropped by 25-30%.”
“The State government also saw a decline in Road Tax & GST collection. In such a situation, Chief Minister Pramod Sawant and Transport Minister Mauvin Godinho came to the rescue of Automobile Industry in Goa based on our recommendation and took a bold decision to reduce the Road Tax by 50% on all vehicles from October to December 2019,” said Kuncoliencar.
He said there had been a lot of criticism from different sectors on government’s move.
“The decision to reduce road tax was required, failing which many automobile dealerships would have closed down, thus creating unemployment issues. The timely decision of Goa government saved the situation and the industry, which gives direct and indirect employment to over 8,000 people in Goa.”
Kuncoliencar claimed that despite baseless allegations and criticism, revenues had increased many folds by way of GST and Road Tax collection.
Based on the data submitted by most of Automobile Dealers, the GADA said there had been a significant percentage of increase of vehicle sales, GST increase and Road Tax increase despite a 50% reduction in road tax from October to December 2019, in comparison to the same period in 2018.
While four-wheelers sales had increased by 81% and two-wheeler sales had increased by 6%, the Road Tax had increased by 7% despite the reduction by 50% and there had been an 83% increase in GST based on invoices raised by the dealers.
“We, therefore, sincerely place on record our gratitude and thanks to Chief Minister Pramod Sawant and his entire cabinet for saving the automobile industry in the State,” said Kuncoliencar.
Meanwhile, GADA has already placed a request with the government to consider extending the road tax reduction till March 31, 2020. The members of GADA are awaiting government’s response on the request.
