In a bid to redeem the plunging demand in the auto sector, the Goa government on Wednesday announced to slash road tax by 50 per cent on the purchase of any type of new vehicles for a period of three months, till December 31.

Chief Minister Pramod Sawant said the Cabinet has given its nod to reduce the road tax by 50 per cent on purchase of any type of new vehicle till December 31, 2019.

As per state Transport Department data, the overall registration of vehicles in Goa during the first four months of the current financial year declined by 15-17 per cent.

A total of 19,480 vehicles were registered from April to July, 2019. “With festivals like Diwali approaching, this decision of the government will help the auto industry,” said Transport Minister Mauvin Godinho.

Currently, two-wheelers costing upto Rs 1.5 lakh are taxed at 9 per cent of the vehicle cost, while those between Rs 1.5 lakh to Rs 3 lakh at 12 per cent. The vehicles costing more than Rs 3 lakh attract 15 per cent tax, as per the data.

The tax on the four-wheelers costing up to Rs 6 lakh is currently 9 per cent while the same is 11 per cent for the vehicles costing up to Rs 10 lakh. Vehicles in the Rs 10 lakh-Rs 15 lakh bracket are charged with 11 per cent tax of the cost and those above Rs 15 lakh at 13 per cent, it stated.

The economic slowdown which has hit the country is not something that India is facing alone as the new managing director of the International Monetary Fund (IMF) Kristalina Georgieva said that the effects of the global economic slowdown this year is “more pronounced” in some of the largest emerging market economies like India.

“In 2019, we expect slower growth in nearly 90 per cent of the world. The global economy is now in a synchronized slowdown,” Georgieva said at the IMF headquarters here on Tuesday, Efe news reported.