Panaji, Oct 1 (IANS): Nearly a year after the Goa government warned of a crackdown on local owners of luxury cars registered in Puducherry, on account of the low road tax in the union territory, the state transport department has now slashed road tax for all vehicles by as much as 50 per cent for a period of three months ahead of the festive season.

The Congress has described the decision taken by Transport Minister Mauvin Godinho as a "gimmick".

"The decision was taken to provide an incentive to the common man, especially before the festive season when people tend to spend money on new goods including vehicles," Godinho said on Tuesday.

Currently, the road tax slabs for vehicles range from 9 per cent for two wheelers to 15 per cent for cars depending on the price of the vehicle. The move to slash road tax for three months, comes a year after the transport department issued a warning to owners of luxury vehicles in Goa, not to register their expensive cars in states and union territories with low road tax slabs like Puducherry.

Slashing of the road tax ahead of the festive season, would now discourage the trend of purchasing and registering expensive vehicles outside Goa, which in the past had led to revenue leakage.

The Congress, however, has described the move as a gimmick, saying it would have no impact on the life of a common man. "The common man is so low on finances because of the economic situation, buying a new vehicle is the last thing on his mind," the Congress said.