The Goa government rolled back road tax by 50 per cent for all vehicles up to December 31, with the Cabinet pushing at it as a measure of incentives to the car buyer.
Speaking to media, Chief Minister Pramod Sawant confirmed: "We decided to reduce road tax up to 50 per cent for all registration of all vehicles until December 31."
Goa has been replicating the economy downturn--with very little stock pushed in the first two quarters, with the state automobile sector badly hit. At present road tax includes 9 per cent to 12 percent for two-wheelers and between 9 and 15 per cent for four-wheelers depending on purchase slabs.
The timing of the decision followed a long statewide protest by car associations and dealers who warned a dip in sales, and looked to government for support. The move also is a follow up to a state transport department notification which speaks the incentive was available for registration of luxury class vehicles.
According to car dealers the move will also ensure car owners getting their vehicles with a Puducherry registration to beat Goa's road tax.
Transport Minister Mauvin Godinho said the decision was also taken to ensure it was in time before the festivities began. Though, dealers feel it still came a day late after Dussehra when traditionally cars go for peak sales.
Goa continues to have customers going for personal vehicle due to the state's poor public infrastructure. the sector and the government is hopeful to see a correction in the next 30 days with festival purchases, said officials.