Union Minister Nitin Gadkari Clarifies: No Proposal for Extra GST on Diesel Vehicles

New proposal suggests 10% GST increase for diesel vehicles. Learn more about the potential impact on the automotive industry.

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"U-Turn on Diesel Tax: Minister Denies Proposal After Earlier Statement"

Union Minister for Road Transport and Highways, Nitin Gadkari, recently clarified his stance on an additional 10% GST proposal for diesel vehicles. Initially, he suggested this tax as a means to discourage diesel car manufacturing and sales in India.

Change of Stance:

Gadkari made a surprising U-turn by denying any such proposal. He took to social media, stating that there is currently no active consideration by the Indian government for this additional GST on diesel vehicles.

Environmental Commitment:

He emphasized the government's commitment to achieving Carbon Net Zero by 2070 and reducing air pollution. Gadkari stressed the importance of embracing cleaner and greener alternative fuels that are cost-effective, indigenous, and pollution-free.

Earlier Remarks:

Previously, Gadkari had mentioned the idea of a 10% GST on diesel vehicles. He highlighted the decrease in the share of diesel engines in the Indian vehicle fleet, from 63% in 2014 to 18% in 2023. He also expressed concerns about diesel as a hazardous fuel and India's significant diesel imports.

Future Actions:

Although the proposal for extra GST on diesel cars was initially raised, it appears that the government is currently not pursuing this course of action. Gadkari's clarification signals a focus on encouraging cleaner fuels and reducing diesel's role in India's transportation sector.

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