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On the fence about buying a new vehicle? Goa government’s latest move might help you take the call
The Goa government has drastically reduced road tax by fifty per cent on purchases of new vehicles for a period of three months. The move follows multiple quarters of poor sales and is expected to help the struggling auto industry.
Goa transport minister Mauvin Godinho made the announcement.
Manoj Caculo, the president of the Goa Chamber of Commerce and Industry, said he expected a significant boost in auto sales after the government’s move.
“We were witnessing a de-growth of 25% in the sales of vehicles— both cars and two wheelers. We had made a representation to the government to reduce the road tax by 50% up to the end of the financial year,” Caculo said.
Caculo said the tax cut will lead to a substantial decrease in the prices of new vehicles.
The tax reduction comes ahead of the festive season and is expected to boost sentiment as well as demand. Also, given its temporary nature, the tax cut is expected to push those holding back on a purchase to take the plunge.
Much like the rest of the country, sales of vehicles have slowed down in the coastal state. Goa has a vehicle population of 13.82 lakh as of January this year while the state’s population is around 16 lakh. Vehicle sales have dropped 15 per cent in the first four months of this financial year in Goa. In April to July 2019, 19,485 vehicles were sold as against 22,480 in the corresponding period last year.