Union Minister for Road Transport and Highways Nitin Gadkari He clarified on Thursday that he is not against diesel fuel. Seeking to clarify his comments on additional tax on diesel engine-powered vehicles, Gadkari said he wanted to ask automobile manufacturers to take steps to reduce pollution, PTI reported. The minister reportedly further said that there is no proposal to impose tax on diesel vehicles.
Gadkari had given statement on 12th September
Earlier this week, Nitin Gadkari’s comments about imposing an additional 10 per cent tax on diesel-powered vehicles to help cut emissions had sparked controversy. He later clarified that there is no such proposal under active consideration by the government. The minister has reportedly clarified that comment by saying that he is not against diesel fuel and the government is not going to impose any tax on diesel vehicles.
There is an urgent need to clarify media reports suggesting an additional 10% GST on the sale of diesel vehicles. It is essential to clarify that there is no such proposal currently under active consideration by the government. In line with our commitments to achieve Carbon Net…
— Nitin Gadkari (@nitin_gadkari) September 12, 2023
Indian government is already offering incentives for electric cars
Gadkari has also said that from a pollution point of view, diesel is very dangerous and it is actually causing health problems in India. Keeping an eye on that, he suggested that the automobile industry should focus on the use of alternative fuels in their respective vehicles. Gadkari reportedly said, “My suggestion to the industry is that the best way to reduce pollution is to focus on alternative fuels.” He also reportedly stressed that he is not against any industry and pointed out that the Indian government is already offering incentives for electric cars.
Gadkari’s statement in ‘SIAM’ meeting
Speaking at the annual conference of automobile manufacturers’ body SIAM on September 12, Gadkari said rising pollution levels in India were a serious health concern and there was a case for increasing taxes to curb the sale of diesel vehicles. He reportedly said, “I am requesting the Finance Minister to impose additional 10 per cent GST on diesel engines/vehicles. This is the only way to phase out diesel vehicles.” However, soon after, he took to social media platform X to clarify the government’s position. “It is necessary to clarify that no such proposal is currently under active consideration by the government,” Gadkari wrote in a social media post, citing media reports suggesting the imposition of an additional 10 percent GST on diesel vehicles. was given.
28 percent GST is levied on automobiles in India.
Currently, automobiles in India attract 28 percent GST. Additionally, a cess ranging from 1 percent to 22 percent is levied depending on the type of vehicle. SUVs and MPVs attract the highest GST rate of 28 percent along with 22 percent compensation cess. This brings the total tax burden on utility vehicles to 50 percent.