Nitin Gadkari proposes additional 10% GST on diesel vehicles

Gadkari believes that the industry should phase out diesel and transition to alternate fuels like LNG and bio-fuel.

Nitin Gadkari, Minister for Road Transport & Highway, has urged automakers to transition away from diesel-powered vehicles. Citing it as a hazardous fuel, the minister warned that the government would increase taxes if the industry doesn’t shift away from diesel fuel.

While addressing the 63rd annual SIAM convention, Gadkari stated that he would request Finance Minister Nirmala Sitharaman to impose a pollution tax in the form of an additional 10% GST on diesel vehicles and diesel gen-sets.

Gadkari believes that the industry should phase out diesel and transition to alternate fuels like LNG and bio-fuel. Currently, most commercial vehicles run on diesel, although CNG and electric buses are being widely used for public transport across India.

Diesel has been the fuel of choice among car buyers as well. Most carmakers offer diesel engine options in their SUVs, including homegrown brands like Tata Motors and Mahindra.

Source: ET Auto