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Goa hikes taxes on cars, two-wheelers

Buying a two-wheeler, car or SUV in Goa will become dearer from the new financial year, as the state government has hiked taxes.

Chief minister Laxmikant Parsekar in his budget imposed a 15 per cent value-added tax (VAT) from April 1 on luxury cars and SUVs costing between Rs15 lakh and Rs25 lakh and two-wheelers costing more than Rs2 lakh. Cars costing above Rs25 lakh would attract a VAT of 18 per cent.

According to Parsekar, the government would do everything possible to curb pollution by vehicles.

The government also hiked registration taxes on new vehicles; two-wheelers costing above Rs1.5 lakh will have to pay a tax of 10 per cent, while four-wheelers priced above Rs6 lakh will be taxed at nine per cent.

The government also increased VAT on petrol from 15 per cent to 22 per cent, resulting in petrol becoming dearer by Rs4 a litre.