Union minister Nitin Gadkari clarified his stance on the taxation of diesel vehicles, emphasizing the need for automobile manufacturers to take measures to reduce pollution. He further stated that there are no plans to levy taxes on such vehicles. His earlier statement suggesting a 10% tax on diesel-run vehicles to mitigate emissions had stirred up controversy.
“I am not against diesel fuel, and there is no intention to impose taxes on diesel vehicles,” Gadkari confirmed in an interview with CNBC-TV18.
Gadkari acknowledged the hazardous nature of diesel from a pollution standpoint and emphasized the health issues it causes in the country.
Despite this, he clarified that he is not against any specific industry and highlighted the government’s efforts in providing incentives for electric cars.
“Therefore, my suggestion to the industry is to focus on alternative fuels as the most effective way to reduce pollution,” he added.
During an address at the annual convention of automobile manufacturers body SIAM on September 12, Gadkari expressed concerns about the increasing pollution levels and proposed the idea of imposing an additional 10% GST on diesel engines/vehicles to discourage their sale.
However, he later took to social media platform X to clarify the government’s position, stating, “It is important to clarify that the government is not actively considering such a proposal at the moment,” referring to media reports that quoted him on the suggested GST increase.
Currently, automobiles are subject to a 28% GST, with an additional cess ranging from 1% to 22% based on the vehicle type. SUVs attract the highest GST rate of 28%, along with a 22% compensation cess.
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