Due to increase in road tax for motor vehicles, the auto dealers in Goa are facing a loss of revenue. The tax rate was increased to 21 percent on September 21. The Goa Automobile Dealers Association (GADA) has claimed that they have witnessed 35% percent of vehicle bookings being cancelled.
Auto dealers claim loss of revenue and jobs
GADA claims that the increase in tax rate may cause them to lose 25-30 percent in sales revenue. This is likely to also decrease the revenue the state government derives from the sector. The government earns around 800 – 1,000 crores from the sector. Besides revenue, GADA has highlighted the trend will put around 2000 jobs at risk of being terminated.
The auto dealers have claimed tax rate ranging between 6-15 percent is acceptable. In the span of four years, the road tax has gone from 6 per cent to 21 per cent. GADA also mentioned that seven dealerships were closed over the past one year due to non-viability.