NEW DELHI: Union road transport minister Nitin Gadkari said on Tuesday that he will propose 10% additional Goods and Services Tax (GST) on diesel-powered vehicles to discourage automobile companies from manufacturing such vehicles running on “most polluting” fuel.
Speaking at an event of the automobile lobby group, Society of Indian Automobile Manufacturers (SIAM), “I have kept a letter ready, which I will hand over to finance minister this evening proposing to put additional 10% GST on diesel vehicles and all engines that run on diesel.”
He urged the industry to take suo motu action, otherwise the government will have no option than creating conditions that will compel them to do so.
“Say goodbye to diesel. Take suo motu action, else we will increase the tax so much that you won’t be able to sell diesel vehicles,” Gadkari said.
He said the share of diesel car has reduced in the past nine years from 33% in 2014 to 28% now.
Gadkari underscored the imperative for the automotive industry to expedite the shift from diesel to cleaner fuel alternatives. He highlighted the environmental concerns linked to diesel engines and emphasized the critical role of curbing pollution and carbon emissions.
Gadkari also emphasized the urgency of enhancing vehicle and road engineering to reduce the number of road accidents and fatalities. He stressed the need for a concerted effort in this direction.
The minister’s proposal to increase GST on diesel vehicles is expected to encourage both manufacturers and consumers to explore greener and more eco-friendly transportation options.
This move aligns with the Modi government’s commitment to promoting sustainable practices and reducing the environmental impact of the automotive sector.