Panaji, Oct 9 (IANS): In a bid to incentivise purchase of new vehicles, the Goa cabinet on Wednesday rolled back road tax by 50 per cent for all new vehicles till December 31, Chief Minister Pramod Sawant announced here.

"We have decided to reduce road tax up to 50 per cent for all registration of all vehicles until December 31," Sawant told reporters, after a meeting of the state cabinet on Wednesday.

The decision comes a day after promoters of car dealerships in the state warned of a dip in car sales and requested the state government to incentivise purchase of vehicles.

Last month, the state transport department had announced a 50 per cent discount on road tax for registration of new luxury class vehicles.

The incentive was given in order to ensure reversing the trend of Goan luxury car owners getting their vehicles registered in Puducherry where road tax is lower compared to Goa.

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.