VIKRAM NAYAK
VASCO
Hailing Transport Minister Mauvin Godinho’s decision to waive off 50% on road tax as a good decision to boost vehicle sales, the Goa Automobile Dealers Association (GADA) has, however, regretted that the decision was not enforced ahead of Dussehra.
GADA President Prashant Joshi has said a number of vehicles had been booked, but people were awaiting the road tax sops and not taking deliveries. This delay had not only affected automobile dealers but had also affected the government’s revenue from GST and Joshi appealed to the government to implement road tax discount to boost Diwali and Christmas sales.
CHALLENGE
Speaking exclusively to The Goan, Joshi said situation in the automobile industry was not very encouraging, with a 35-40% drop in vehicle sales across the country.
“The automobile sector contributes 10% GDP of the country and is a huge employment generating sector. It is in a very bad situation at the moment, unless there is some stimulus or push given by the central and state governments.”
“Unfortunately, there were high expectations that the recent GST council meeting in Goa would reduce the very very high GST (up to 50%) on vehicles but that did not happen.” “Subsequently, the Centre offered a stimulus in the form of waiving off 15% corporate tax for new industries and also gave a 15% additional depreciation over purchases of vehicles. But that also did not give the required boost and now, the ball is in the court of State government,” said Joshi.
PROPOSAL
In a bid to boost vehicle sales, Joshi said the GADA in July had submitted a proposal to the State government seeking a 50% reduction in road tax for a temporary period.
“Public sentiments are low at present and after the GST council meeting, automobile manufacturers and dealers have jointly increased discounts to a very high level, never seen before in the history of automobile sector. But an additional boost from State government would have made a huge difference to attract customers,” said Joshi.
“Our proposal was considered and Transport Minster Mauvin Godinho announced on September 30 proposing to the State government that road tax be reduced by 50% for three months.”
RESPONSE
“We could see immediate results from the very next day itself of the minister’s announcement and there was total surge in demand and showrooms were flooded with enquiries. Customers also booked vehicles and there was a sudden 25-30% surge in enquiries,” said Joshi.
The GADA president said vehicle dealers, however, realised after a few days that the 50% reduction in road tax was yet to be enforced by the State government.
“As a result, many people had made bookings and were looking to buy vehicles for Dussehra, but did not take deliveries as they were awaiting reduction in road tax.”
“One dealer made 30 deliveries on Dussehra, but 175 customers did not take deliveries. Another dealer made 10 deliveries but 70 customers have not taken deliveries because they are awaiting the implementation of the road tax reduction,” said Joshi.
Implement decision, Joshi urges govt
VASCO: GADA President Prashant Joshi said the proposal and subsequent recommendation by Transport Minister Mauvin Godinho would have definitely boosted sales and economic growth because dealers pay IGST upfront to the Central Government purchasing stocks.
“The State government gets its share only after retail takes place and customers buy vehicles. Hence, even the State government has fallen short of its target of GST collections,” said Joshi.
“We urge the State government to implement the right decision by the transport minister of offering a 50% reduction in road tax for a short period because festive season has started and will last from October to December.”
“We have Diwali and Christmas fast approaching and this road tax sop will certainly boost vehicle sales and also generate revenue to the State government,” added Joshi.
