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Goa state government hikes taxes on premium motorcycles

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Ranjan R. Bhat

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Goa state government hikes taxes on premium motorcycles

Getting your own set of wheels in Goa has become more expensive on account of the recent hike in taxes for premium two-wheelers and four-wheelers. A step taken to curb pollution in the state, the state government has increased the VAT (value added tax) and registration charges levied on new motorcycles.  

According to the new rule, owners of motorcycles costing more than Rs 2 lakh would have to pay 15 per cent VAT. The government has also hiked registration taxes on new motorcycles costing above 1.5 lakh to 10 per cent. Budget motorcycles and scooters which fall below the above mentioned price remain unaffected by these revisions. Given that these charges are directly reflected on the on-road price of motorcycles, it is the customer who will have to bear the brunt of the hike. To give an example, a Royal Enfield Classic 500, is now over Rs 10,000 more expensive than before.

Goa’s government seems pretty intent on reducing the pollution levels in the state caused by automobiles. It is not just the two-wheelers that have become dearer as the government has imposed a similar hike in VAT and registration charges for premium four-wheelers. Petrol has also become more expensive as a result of the hike in VAT imposed on petroleum.

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