PROPOSED ROAD TAX RATES
4-WHEELER PRICE PRESENT PROPOSED
Upto Rs 6 lakh 8 percent 9 percent
Rs 6-10 lakh 9 percent 11 percent
Rs 10-15 lakh 10 percent 12 percent
Rs 15-25 lakh 10 percent 15 percent
Above Rs 25 lakh 10 percent 18 percent
(Source: Budget speeches for 2016-17 and 2013-14)
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PANAJI:
The tax hike is particularly steep for certain categories. For instance, the owner of a four-wheeler will now have to bear 18 percent tax instead of 10 percent as earlier, a whopping hike of 80 percent. It is even higher on purchase of company vehicles.
Sample this: If a company with a share capital of more than Rs 50 lakh is buying a car priced at more than Rs 25 lakh, the road tax it will have to pay will be 21 pc which was 14 pc earlier. Similarly, VAT has been increased from 12.5 pc earlier to 15 pc now on cars costing Rs 15 lakh and above and on two-wheelers priced at Rs 2 lakh and above.
Sources in Goa Automobile Dealers Association said that the tax increases are going to affect sales badly, which will force them to lay off employees. The future of around 5,000 people employed by automobile dealers in Goa is at stake.
Dealers also maintain that the state government will earn lesser tax revenue as automobile sales will dwindle post tax increase.
Goa is a small state with high per capita income, due to which many premium brands like BMW, Audi, Mercedes and Kawasaki have their showrooms here. People from neighbouring parts of Karnataka and Maharashtra like Hubli, Dharwad and Karwar come to Goa to buy premium bikes and cars because they don’t have these showrooms there.
This market will be badly affected too due to increase in VAT. Rahul Naik, managing director of Sitara Bajaj, said, “People, who used to come to Goa to buy Kawasaki bikes from places like Karwar, will now go to Bangalore because our state government has increased VAT”
The new VAT rates have already come into force, while the state government is yet to implement new road tax rates. Dealers are hoping that the state government will pay heed to their requests by not implementing such a high increase in road tax.
The Goan Everyday tried speaking to the transport director, but could not get comments from his side.
