Union Minister Nitin Gadkari Addresses Diesel Vehicle Tax Proposal and Clean Energy Transition

Union Minister Nitin Gadkari Denies 10% GST Hike on Diesel Vehicles

Nitin Gadkari
No Additional Tax Proposed

Union Minister for Road, Transport, and Highways, Nitin Gadkari, has made it clear that there is no intention to impose an extra 10% Goods and Services Tax (GST) on the sale of diesel vehicles. Recent media reports had suggested such a move, causing concern among the public.

In a social media statement, Mr. Gadkari stated that the government is not currently considering any such proposal. He emphasized the government’s commitment to achieving Carbon Net Zero by 2070 and reducing air pollution caused by diesel fuel. To fulfill these goals, embracing cleaner and more eco-friendly fuels is essential.

Transforming Towards Cleaner Energy

During the 63rd SIAM Annual Convention, Gadkari mentioned his plan to propose a 10% “pollution tax” on diesel engine vehicles to Finance Minister Nirmala Sitharaman. He believes this tax is crucial to reduce the use of diesel vehicles in the country.

Gadkari urged the auto industry to shift away from diesel and petrol vehicles in favor of cleaner alternatives. He stressed that the government might have to introduce additional taxes if the industry doesn’t cooperate. Gadkari mentioned that this transition has already been successfully implemented worldwide, with the necessary technology available.

The Need for a Transition

Gadkari insisted that now is the right time for India to transition from diesel and petrol to biofuels, alternative fuels, and other sustainable energy sources for mobility. He highlighted the industry’s remarkable growth, moving from the 7th position in 2014 to the 3rd position today, with significant economic benefits.

However, after Gadkari’s comments, shares of Indian automakers Tata Motors, Mahindra and Mahindra, and Ashok Leyland fell by 2.5% to 4%.

In conclusion, while there are no immediate plans for a 10% GST hike on diesel vehicles, the government is actively encouraging the automotive industry to embrace cleaner and greener energy sources to combat pollution and achieve long-term sustainability goals.

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