‘No such proposal under consideration’: Nitin Gadkari refutes reports of govt planning to propose 10% additional GST on diesel vehicles
12 Sep 2023 17:11:52
New Delhi, Sept 12: Union Minister for Road Transport and Highways Nitin Gadkari refuted media reports claiming that the government is planning to propose a 10% additional GST on diesel vehicle purchases.
"There is an urgent need to clarify media reports suggesting an additional 10 per cent 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," Gadkari wrote on social media platform X, formerly known as Twitter.
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
“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,” he added.
This clarification came after several media reports like the Times of India, Times Now, CNBC, Money Control, etc. reported that the minister was ready to propose an additional 10% Goods and Services Tax (GST) on the purchase of diesel cars in India. They also claimed that the Minister cautioned automakers about the possibility of further increased levies if they continue to sell highly polluting vehicles.
"Say bye to diesel soon, otherwise we will increase so much tax that it will become difficult for you to sell these vehicles … we have to leave petrol and diesel soon and walk on the new path of being pollution free," Gadkari was quoted as saying by Reuters.
According to reports, Gadkari made these remarks during a meeting in New Delhi attended by executives from Tata Motors, Mahindra & Mahindra, Maruti Suzuki, and foreign automakers such as Mercedes and Volkswagen.
Gadkari, according to these reports stated that he would approach Finance Minister Nirmala Sitharaman for an “additional 10%” GST goods and services tax on diesel automobiles due to growing pollution. Currently, the government levies a 28% tax on diesel vehicles, with an additional cess assessed based on engine capacity.