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Govt promulgates ordinance to make 50% road tax cut effective

Panaji: The state government on Friday promulgated an ordinance reducing road tax by 50 per cent on purchase of new vehicles.

The law and judiciary department has issued a notification stating that Governor Mridula Sinha has promulgated Goa Motor Vehicles Tax (Amendment) Ordinance, 2019, which will remain in force till December 31, 2019. As per the ordinance, the two-wheelers and three-wheelers costing up to Rs 1.5 lakh and currently taxed at 9 per cent of the vehicle cost would now be charged 4.5 per cent road tax, while for two-wheelers costing between Rs 1.5 lakh and Rs 3 lakh, the taxation is reduced to 6 per cent.

Further, the ordinance states that for two-wheelers costing above Rs 3 lakh, the tax would be 7.5 per cent and for motor vehicles belonging to individuals and costing up to Rs 6 lakh, tax would be charged at 4.5 per cent. For vehicles costing between Rs 6 lakh and Rs 15 lakh, one will have to pay 5.5 per cent tax. Vehicles costing between Rs 15 lakh and Rs 35 lakh will be charged 6.5 per cent tax, while owners of vehicles costing above Rs 35 lakh will have to shell out 7 per cent as tax.

“The legislative assembly of Goa is not in session and Governor of Goa is satisfied that circumstances exist which render it necessary for her to take immediate action,” the notification states. It may be noted that Transport Minister Mauvin Godinho had announced that the government would reduce road tax on purchase of new vehicles by 50 per cent from October 1 to December 31, 2019. However, the cabinet decision in this regard was taken on October 9. Interestingly, the cabinet has resolved to reduce road tax by 50 per cent on purchase of vehicles without the approval of the finance department.

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