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On Tuesday, Union Minister Nitin Gadkari stated that the government is not actively considering any proposal for an additional 10 per cent GST on the sale of diesel vehicles.
GST hike on diesel vehicles denied
The minister issued a clarification on X, formerly Twitter, stating, "We urgently need to clarify media reports that suggest an additional 10% GST on the sale of diesel vehicles. It is essential to clarify that the government is not currently actively considering any such proposal."
Gadkari wrote on X, formerly called as Twitter, saying, "We urgently need to clarify media reports suggesting an additional 10% GST on the sale of diesel vehicles. We must clarify that the government is not currently considering any such proposal. We have committed to achieving Carbon Net Zero by 2070 and reducing air pollution caused by hazardous fuels like diesel, as well as addressing the rapid growth in automobile sales. It is crucial that we actively embrace cleaner and greener alternative fuels that are import substitutes, cost-effective, indigenous, and pollution-free."
Union Minister proposes 10% pollution tax?
The Union Minister announced that the finance ministry will be sought to impose a "pollution tax" in the form of an additional GST of 10 per cent on diesel vehicles and gensets in order to reduce air pollution.
"Gadkari said, "I have already drafted a letter in this regard and will be meeting Union Finance Minister Nirmala Sitharaman today evening. I will urge her to increase taxes to such an extent that the sale of diesel vehicles drastically comes down."" - Gadkari stated that he had already drafted a letter in this regard and would be meeting Union Finance Minister Nirmala Sitharaman in the evening. He expressed his intention to urge her to increase taxes to such an extent that the sale of diesel vehicles would drastically decrease.
Gadkari spoke at the 63rd Annual SIAM convention in the national capital and stated that diesel vehicles cause excessive pollution and pose a health hazard for citizens.
Gadkari stated that diesel is a hazardous fuel and acknowledged that the country has to import the fuel to meet the demand. The Union minister urged the automobile industry to focus on environment-friendly alternative fuels like ethanol and prioritize green hydrogen.
This evening, Gadkari, the Union Road Transport and Highways Minister, will handover a letter to the Finance Minister stating that they should put an additional 10 per cent GST on diesel-powered vehicles.
The majority of the commercial vehicles in India currently run on diesel, as noted. Automobile majors like Maruti Suzuki India and Honda have already stopped manufacturing diesel cars.
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