ETV Bharat / business

Goa promulgates ordinance to halve road tax on new vehicles

Aiming to give a boost to the auto industry, which has turned sluggish, Goa government promulgated an ordinance to slash road tax on new vehicles by 50 per cent.

Goa promulgates ordinance to halve road tax on new vehicles

Goa promulgates ordinance to halve road tax on new vehicles

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Published : Oct 19, 2019, 10:41 AM IST

Panaji: The BJP-led Goa government on Friday promulgated an ordinance to slash road tax on new vehicles by 50 per cent.

The move is aimed at giving a boost to the auto industry, which has turned sluggish.

State Governor Dr Mridula Sinha promulgated Goa Motor Vehicles Tax (Amendment) Ordinance, 2019, which would be in force till December 31, 2019.

Transport Minister Mauvin Godinho said the move is aimed at helping the auto industry, which is going through difficult times.

"As the Diwali festival is coming, we will see more and more purchase of new vehicles, thereby improving the state revenue as well," he said.

As per the ordinance, two-wheelers and three-wheelers costing up to Rs 1.5 lakh, which are currently taxed nine per cent of vehicle cost, would be now charged 4.5 per cent.

For two-wheelers in the price range of Rs 1.5 lakh to Rs 3 lakh, the tax will be 6 per cent from the existing 12 per cent, while for the vehicles above Rs 3 lakh, it would be 7.5 per cent.

Four-wheelers up to Rs six lakh would be charged 4.5 per cent tax as against the present nine per cent, while for vehicles worth Rs six lakh to Rs 15 lakh, the tax would be 5.5 per cent instead of 11 per cent.

For the vehicles costing anywhere between Rs 15 lakh and Rs 35 lakh, a tax levied would be 6.5 per cent, while for the vehicles above Rs 35 lakh, it would be seven per cent.

Read more: Corporate income tax cut will help revive investment in India: IMF

Panaji: The BJP-led Goa government on Friday promulgated an ordinance to slash road tax on new vehicles by 50 per cent.

The move is aimed at giving a boost to the auto industry, which has turned sluggish.

State Governor Dr Mridula Sinha promulgated Goa Motor Vehicles Tax (Amendment) Ordinance, 2019, which would be in force till December 31, 2019.

Transport Minister Mauvin Godinho said the move is aimed at helping the auto industry, which is going through difficult times.

"As the Diwali festival is coming, we will see more and more purchase of new vehicles, thereby improving the state revenue as well," he said.

As per the ordinance, two-wheelers and three-wheelers costing up to Rs 1.5 lakh, which are currently taxed nine per cent of vehicle cost, would be now charged 4.5 per cent.

For two-wheelers in the price range of Rs 1.5 lakh to Rs 3 lakh, the tax will be 6 per cent from the existing 12 per cent, while for the vehicles above Rs 3 lakh, it would be 7.5 per cent.

Four-wheelers up to Rs six lakh would be charged 4.5 per cent tax as against the present nine per cent, while for vehicles worth Rs six lakh to Rs 15 lakh, the tax would be 5.5 per cent instead of 11 per cent.

For the vehicles costing anywhere between Rs 15 lakh and Rs 35 lakh, a tax levied would be 6.5 per cent, while for the vehicles above Rs 35 lakh, it would be seven per cent.

Read more: Corporate income tax cut will help revive investment in India: IMF

Intro:Body:

Indore, Oct 18 (PTI) Corporate biggies like Reliance

Industries, ITC and Godrej group among others on Friday

announced a major investment and expansion plans in Madhya

Pradesh as the Congress-ruled state seeks to grow faster.

   Among the major announcements at the Kamal Nath led

government's maiden investor summit --Magnificent MP--include

an announcement by Reliance Industries chairman Mukesh Ambani

to set up national distribution centres, with over 10 million

square feet of space across 45 locations in the state.

       The company, which has over 600 retail stores and 100

petrol pumps in the state, is planning to more than double

them over the next few years, Ambani said in a recorded

message.

   Reliance is among the largest investors in the state,

having pumped in over Rs 20,000 crore in the last few years,

he said, without giving details.

   FMCG major, ITC chairman Sanjiv Puri announced a Rs

700-crore food park in the state, which will have a large

facility for dehydrating vegetables such as beans and carrots.

   Adi Godrej said Godrej group, which has been operating

in the state for several years, committed to continue to be a

steadfast investor in the state.

    Sun Pharmas Dilip Shanghvi, said over last few years

the company has invested close to Rs 500 crore in the state

and is looking at expanding its facilities at Dewas and

Malanpur.

   India Cements vice-chairman and managing director N

Srinivasan also said his company intends to double the

capacity of its plant in the state.

   The state chief minister Kamal Nath said, his

government was keen to put the state on the industrial map of

the country. He called upon the industry to come forward and

support MP's transformation into a vibrant industrial state.

   While talking to reporters, Nath said the state

received a lot of investment proposals during the summit, but

refused to give any details.

       "This investors summit was not a showoff or an MoU

signing programme. Our focus is to build trust for investors

to invest in the state," he said.

   Nath further said in the last 10 months, the state

government has tried to improve the system of governance.

        "We want to create an environment in MP where an

investor comes because of the government. One can formulate

the number of investment policies but if the policies dont

appeal to the investors, they wont invest," he added.

   The chief minister had instructed that the industry

department will not sign any investment pacts with prospective

investors at the summit, but will only discuss proposals, the

state chief secretary S R Mohanty said on Thursday.

        This was because the previous summit held by the BJP

government three years ago had attracted about Rs 5 lakh crore

investment proposals but only Rs 1.20 lakh crore of

investments were materialised-which is just under one-fourth

of the commitment, Mohanty said.

   According to Nath, the state is not witnessing any

slowdown.

    "Investment sentiments in the state have not reduced.

In fact, the state has witnessed a 4 per cent increase in auto

sales. The growth in FMCG products and consumer product sales

has not declined, he said.

   He said the government will be developing a business

district in Indore on the similar lines of Bandra-Kurla

Complex in the Mumbai.

Conclusion:

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