The Budget 2017 has some good news for the Goan Auto Industry which has seen distress first due to the mining ban, banning of registration of two wheeler for rent a bike and lastly due to demonetisation.
Chief Minister Mr. Manohar Parrikar who also holds the Finance portfolio in his speech has announced many new initiatives which could help to slight boost the vehicles sales in Goa.
Key highlights of the budget which impacts the Goan Auto Industry
Goa government will rationalize motor registration tax for high end vehicles –
This is indeed big news as the registration fees for high end cars had been increased which led to drop in sales of high cars and bikes.
With the rationalization of motor registration tax for high end vehicles it will help to boost high end and luxury car sales.
It will also help to avoid registration of vehicles in other states, which have much lower incidence of tax, thereby causing loss to the state exchequer.
Goa government will lift the moratorium on rent a bike registrations –
Rent a bike is one of the best modes of transport in Goa especially for the tourist. The government had banned registration of new two-wheelers under rent a bike registration as the number of two-wheelers and players had grown exponentially. With the removal of ban it will provide some relief to the businessmen in this segment also help the tourism industry
Goa government will exempt electric cars from motor tax –
This is a welcome step and will help to promote electric cars which are eco-friendly and clean. There are limited options to choose but incentives like these will help to boost sales of electric cars.
Adjustment of Road tax for older vehicles –
In Cases where the registration of an old four wheeler, which is more than 15 years old, is cancelled, the government will allow adjustment of the Road tax paid on the old vehicle against registration of a new vehicle. This will lead to scrappage of older vehicles and Incentivise new vehicle buyer and also increase sales.
Rs 150 crores allotted for improving public transport, especially to tourist destination –
Tourists in Goa have always complained regarding the poor public transport facilities, high taxi and rickshaw fares and how they are made to pay heavy amounts during peak season.
Public transport in Goa is still not well connected and with additional funds allocated this could help to improve connectivity.
Road safety audit worth Rs 220 crores to be taken up this year –
This will help to improve the road conditions and also increase the road safety considering the rising rate of accidents.
VAT on petrol in Goa to be raised to 15% –
Goa is the only the state in India where petrol prices are below diesel. However this is all set to change as 15% VAT has been made applicable on petrol. However the price will be kept below Rs. 65 per litre.
The government to also introduce new levies and fees in terms of the Central Motor Vehicles Act, for the purpose of issues of licences, permits, renewals, etc as proposed by Central Government. The Goa government will implement these levies as fees w.e.f 1st April 2017, and revise them as per local conditions.