GFP questions Goa govt's move to cut road tax on new vehicles

The opposition Goa Forward Party (GFP) on Wednesday questioned the BJP-led state government's intention behind its decision to slash road tax on the purchase of new vehicles, and said it would further hurt the economy.

In a bid to boost demand in the auto sector battling downturn, the state cabinet, chaired by Chief Minister Pramod Sawant, announced earlier in the day that road tax would be slashed by 50 per centon the purchase of any type of new vehicles for a period of three months, till December 31.

Talking to reporters, GFP vice president Durgadas Kamat said the decision would further affect the economy of the state, which is already crumbling due to the closure of the mining industry and sluggishness of the tourism sector.

He pointed out that the Reserve Bank of India (RBI) report on the state's finances has pegged Goa's debts at Rs 22,500 crore.

"This means every citizen in the state owes liability of Rs 1.40 lakh...In such a situation, how far is it justified to slash road tax?" Kamat asked.

He also sought to know the real beneficiaries of the move. "Is it for the vehicle dealers, deal makers, agents or common man? If it is for the common man, then why the decision is not with retrospective effect, that is from April 1?" he asked.