“Goodbye To Diesel,” Minister Nitin Gadkari On Diesel Cars In India (Image: x.com/@nitingadkari)
Nitin Gadkari, Minister for Road Transport & Highways, on Tuesday said, to limit the production of diesel vehicles, otherwise, the government would have no other option but increase the tax on diesel vehicles, which would in turn make their sales difficult. He was speaking at the 63rd Annual SIAM convention, which was held in New Delhi.
“Say goodbye to diesel… Please stop making them, otherwise we will just increase the tax so much that it would become difficult to sell diesel cars,” he had said.
His speech had sounded like a warning and initial reports began circulating suggesting a 10% hike. On this, the minister clarified that no such proposal has been mooted and that presently, nothing on this was under consideration.
He took to Twitter to clarify this, saying that, “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.”
His speech had reflected at the share market with big intraday fall on shares of oil and auto companies.
Presently, a 28% GST, with an additional cess which ranges from 1% to 22% as per the vehicle type are applicable in the country. SUV are the highest tax payers in this segment which holds for 28% GST along with a 22% cess, reported the NDTV.
The minister, in his speech had said that diesel was a hazardous fuel and the demand for diesel, was making India’s fuel imports heavy. He said that a fall in the number of diesel cars can be seen, from 53% in 2014 to 18% presently, which he called a good sign. The minister had made a general call to the carmakers through his speech to reorient and to bring in more environmentally friendly fuels like green hydrogen and ethanol. This move is expected to bring in more electric vehicles.
The Mercedes Benz India was the first in the automotive industry to respond to this yesterday, Managing Director Santosh Iyer said that, they would need six odd months for this, and that this move would change the structure of fuel mix of the Mercedes Benz India car’s portfolio. He added that the move could speed up electrification with more EV, the Times Now News said.
