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Business News/ Industry / Energy/  Nitin Gadkari clarifies statement on ‘additional tax on diesel vehicle purchase’, says ‘no such plans yet’
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Nitin Gadkari clarifies statement on ‘additional tax on diesel vehicle purchase’, says ‘no such plans yet’

No proposal to impose additional 10% GST on sale of diesel vehicles, says Road Transport Minister Nitin Gadkari.

After several media report suggested that Centre is likely to impose additional 10% GST on the sale of diesel vehicles, Road Transport Minister Nitin Gadkari clarified ‘there is no such proposal currently under active consideration’. (PTI)Premium
After several media report suggested that Centre is likely to impose additional 10% GST on the sale of diesel vehicles, Road Transport Minister Nitin Gadkari clarified ‘there is no such proposal currently under active consideration’. (PTI)

After several media report suggested that Centre is likely to impose additional 10% GST on the sale of diesel vehicles, Road Transport Minister Nitin Gadkari clarified ‘there is no such proposal currently under active consideration’.

Apparently, the minister, while encouraging people to embrace green fuels, said that he might consider proposing an additional 10% tax on diesel-run vehicles and generators if there is excessive usage.

His exacts words were, “I am going to handover a letter to the Finance Minister this evening stating that an additional 10 per cent GST be put on diesel-powered vehicles"

Further noting that diesel a highly hazardous fuel and makes the country dependent on imports, he adds, "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."

Following this several media reports said ‘Centre is likely to impose additional 10% GST on the sale of diesel vehicles’. Soon after, auto stocks, including Maruti and Tata Motors, fell sharply.

Later clarifying the same, Gadkari took to Twitter, saying, 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.

Commercial and bigger utility vehicles are largely run on diesel, meanwhile, some industrial machines and engines such as generators also use diesel.

Automobiles are currently taxed at 28 per cent GST, with additional cess ranging from 1 per cent to 22 per cent depending on the type of vehicle. SUVs attract the highest GST at the rate of 28 per cent along with a compensation cess at 22 per cent.

 

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Sanchari Ghosh
Sanchari Ghosh is a Chief Content Producer with LiveMint. She covers news, human interest, epidemiology and personal finance stories
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Published: 12 Sep 2023, 01:54 PM IST
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