GST Pollution Tax:Union Road Transport and Highways Minister Nitin Gadkari has refuted media reports which claimed that he is ready to propose 10 per cent additional GST on the purchase of diesel vehicles. Gadkari tweeted on social media platform Twitter that there is an urgent need to clarify media reports suggesting imposition of 10 percent additional GST on the sale of diesel vehicles. It is necessary to clarify that no such proposal is currently under active consideration by the government.
Nitin Gadkari called the news misleading
Actively adopting clean and green alternative fuels, in line with our commitments to achieve carbon net zero by 2070 and reduce air pollution levels caused by hazardous fuels like diesel, as well as rapidly increasing automobile sales. It is necessary. This fuel should be an import substitute, cost effective, indigenous and pollution free.
It was earlier reported that the minister was ready to propose an additional 10 percent goods and services tax on the purchase of diesel cars in India. Gadkari also reportedly cautioned automakers about the possibility of further duty hikes if they continue selling highly polluting vehicles. According to media reports, say goodbye to diesel soon, otherwise we will increase the tax so much that it will become difficult for you to sell these vehicles.
Gadkari’s comments came during the New Delhi automakers conference, where executives from Tata Motors, Mahindra & Mahindra, Maruti Suzuki and foreign car companies like Mercedes and Volkswagen had gathered. The report claimed that Gadkari said he would ask Finance Minister Nirmala Sitharaman to impose an additional 10 percent GST goods and services tax on diesel vehicles as they increase pollution.