Goa to introduce entry tax; erects toll booths

15 Apr 2013

Goa is erecting fresh toll booths at entry points to the state, making travel to that state costlier, despite protests from neighbouring Maharashtra and Karnataka.

Visitors driving into Goa by road on a four-wheeler will have to pay toll upwards of Rs100, chief minister Manohar Parrikar said at a press conference today.

Parrikar said all vehicles except two-wheelers entering Goa will be charged an entry fee - three-wheelers would be charged Rs100, tempos Rs500, four-wheelers Rs250 and heavy vehicles Rs1,000.

This, however, will not apply to those living in nearby districts of neighbouring states as also those using roads in Goa only for transit, who will be refunded the amount at exit points.

"Those staying in areas near the boundary and regularly travelling between states will be exempted from paying the toll. Vehicles that are using Goa's roads only as a means of transit will have to pay on entry, but will be refunded as they exit the state," the chief minister said.

He said the state has already started collecting entry tax from vehicles entering Goa from other states, adding that the levy is similar to the entry tax that neighbouring states have also been collecting.

Parrikar said the two states should stop charging toll on the highways before telling Goa to consider dropping the entry tax.

"Five toll booths have already been erected at five entry points. One more entry point will be erected soon," Parrikar said.

Residents of border villages in Maharashtra and Karnataka have, meanwhile, staged strong protests demanding roll-back of the levy.

Those living close to entry points in Goa frequent the state for cheaper petrol and diesel since Goa has freed motor fuels from local taxes.

"They can save a lot more than the toll on cheap petrol and diesel prices. Diesel is cheaper by Rs.1.75 considering the existing rate in Karnataka and Rs.3 lesser than the price in Maharashtra," Parrikar pointed out.
 
Goa, however, is looking for alternative sources of revenue as income from mining dried up due to the closure of the mining industry in October last year.

The state government is now looking at innovative ways of raising revenues.

Toll from tourists who flock to Goa could be a steady source of revenue for the fund-starved state government.