Union Minister for Road Transport & Highways Nitin Gadkari denied early media reports claiming he is set to propose 10 per cent additional GST on the purchase of diesel vehicles.
Mr Gadkari also reportedly cautioned automakers about the possibility of further increased levies if they continue to sell highly-polluting 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 Zero by 2070 and to reduce air pollution levels caused by hazardous fuels like diesel, as well as the rapid growth in automobile sales, it is imperative to actively embrace cleaner and greener alternative fuels. These fuels should be import substitutes, cost-effective, indigenous, and pollution-free’ Mr Gadkari wrote on X.
Mr Gadkari’s comments, according to media reports, came during the New Delhi automakers conference where executives of Tata Motors, Mahindra and Mahindra, Maruti Suzuki and foreign car companies such as Mercedes and Volkswagen were gathered.
Mr Gadkari also highlighted a decline in the production of diesel cars since 2014, when they accounted for 52 per cent of total production, down to 18 per cent now.
At present, the government imposes a 28 per cent tax on diesel cars and an additional so-called cess is levied depending on the vehicles’ engine capacity.
Soon after the initial media reports surfaced, shares of major automobile companies fell sharply.
Stay updated with all the insights.
Navigate news, 1 email day.
Subscribe to Qrius
