10% GST Hike On Diesel Engine Vehicles, Proposes Union Minister Nitin Gadkari (Image:twitter.com/AdvAshutoshJDubey)
Union Transport Minister Nitin Gadkari on Tuesday proposed to put an additional 10% Goods and Services Tax (GST) on diesel engine vehicles, as an attempt to reduce pollution. Mr Gadkari was addressing the 63rd annual convention of Society of Indian Automobile Manufacturers (SIAM) in Delhi.
The minister also said that he will be writing a letter to the Union Finance Minister Nirmala Sitharaman detailing the proposal on Tuesday itself. Terming diesel as a “hazardous” fuel, Mr Gadkari noted that the country has to import the fuel to increase the tax on it.
“Pollution is a serious issue and it is causing a health menace too. I”ll be meeting the Finance Minister this evening and will request her that in the coming time, an additional 10 per cent GST be levied on diesel vehicles because people do not seem in the mood to listen anytime soon”, the Press Trust of India (PTI) quoted Mr Gadkari.
VIDEO | “Pollution is a serious issue and it is causing a health menace too. I”ll be meeting the Finance Minister this evening and will request her that in the coming time, an additional 10 per cent GST be levied on diesel vehicles because people do not seem in the mood to listen… pic.twitter.com/0M8ciDQfQ2
— Press Trust of India (@PTI_News) September 12, 2023
“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”, PTI quoted Mr Gadkari.
According to the minister, the contribution of diesel cars has already come down drastically in the country.
The minister later on Tuesday, took his X (formerly Twitter) and clarified that, “there is no such proposal currently under active consideration by the government”.
“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”, he wrote.
The minister also noted the country”s undertaking to achieve it”s net zero targets by the year 2070. “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”, he said.
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…
— Nitin Gadkari (@nitin_gadkari) September 12, 2023
“These fuels should be import substitutes, cost-effective, indigenous, and pollution-free”, added.
According to Hindustan Times, a government panel in May 2023 has recommended banning diesel-powered four-wheeler vehicles by 2027 and switching to electric and gas-fuelled vehicles.
“By 2030, no city buses should be added which are not electric…diesel buses for city transport should not be added from 2024 onwards”, Hindustan Times quoted the panel.
