10% GST on diesel cars! Nitin Gadkari Clarifies “No Such Proposal” Is Under Consideration

Nitin Gadkari Clarifies that there is no proposal of levying 10% GST on diesel vehicles under consideration…

Road Transport & Highways Nitin Gadkari denies the reports of the media showing that 10 percent of GST is to be levied soon on diesel vehicles. 

Gadkari tweeted on X (Formerly Known Twitter) “It is crucial to address the media reports about a possible extra 10 percent GST on diesel vehicle sales. It's important to clarify that the government is not actively considering such a proposal.

He further explained “To be on our words of achieving Carbon Net Zero by 2070 and reducing air pollution caused by harmful fuels like diesel, especially given the rising number of vehicles, it is vital to fully embrace cleaner and more environmentally friendly alternative fuels. These fuels should be locally produced, affordable, and environmentally friendly”.

Earlier, it was mentioned that the minister was considering a 10% increase in the Goods and Services Tax (GST) for buying diesel cars in India. Gadkari also warned car manufacturers that if they keep selling very polluting vehicles, there might be even higher taxes in the future.

Gadkari made these comments at a conference in New Delhi where executives from various car companies like Tata Motors, Mahindra and Mahindra, Maruti Suzuki, Mercedes, and Volkswagen were present.

He mentioned that he plans to ask Finance Minister Nirmala Sitharaman for an "extra 10% tax" on diesel vehicles because they contribute to pollution.

Gadkari also pointed out that the production of diesel cars has decreased significantly since 2014 when they made up 52% of total car production. Now, they account for only 18%.

Currently, the government taxes diesel cars at 28%, and there's an additional fee based on the engine size. After these reports, the stock prices of major car companies dropped.

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