GST cut to drive down vehicle costs for rental sector | Goa News
Panaji: Goa’s rental and taxi operators are likely to see a 7.8% reduction in on-road vehicle costs for new vehicles following the recent rationalisation of GST rates, significantly improving the profitability of local auto, taxi, and bike-rental businesses.However, existing rental vehicle dealers said customers are unlikely to benefit from this change as operational costs continue to rise. From high insurance premiums for commercial vehicles to government compliance fees, cab and rent-a-bike operators said they continue to face multiple challenges.The auto, taxi, and bike-rental ecosystem forms a crucial segment of Goa’s economy. According to the finance ministry, the sector sustains around 40,000 livelihoods in the state, including self-employed taxi drivers, bike renters, mechanics, and spare part dealers. The reforms directly affect taxi unions and rental agencies operating at airports, railway stations, and coastal tourism hotspots, the ministry said.“The insurance premium alone comes to Rs 35,000 for a premium hatchback. Servicing costs go up every year, and now many tourists prefer rent-a-cars or use their private cars. Our business is suffering,” said a taxi operator from Chimbel.During FY 2023–24, the auto, taxi, and rental transport segment contributed about 2% to Goa’s GSDP. With the GST rate cut, the on-road tax component is expected to fall, while easier financing could further enhance affordability, the Centre said in a statement.
