NEW DELHI, Sept 12: In order to reduce air pollution, Union Minister Nitin Gadkari stated on Tuesday that he will seek a “pollution tax” in the form of an additional 10% GST on diesel engines and automobiles.
The Union Minister for Road Transport and Highways stated during his speech at the 63rd Annual SIAM convention that the rising pollution levels pose a threat to the public’s health.
“This evening, I will deliver a letter to the Finance Minister asking that an additional 10% GST be imposed on diesel-powered vehicles,” Gadkari said.Currently, diesel fuels the majority of the nation’s commercial vehicles.
Several automakers, including Maruti Suzuki India and Honda, have already ceased producing diesel vehicles for the passenger vehicle market.
According to Gadkari, the country’s dependence on diesel vehicles has already decreased significantly, and manufacturers must stop putting them on the market.He described diesel as a dangerous fuel and pointed out that the nation needs to import diesel to meet demand.
“Goodbye, diesel… Gadkari pleaded with them to stop, warning that doing otherwise would only result in a tax hike that would make it harder to sell diesel vehicles.
He stated that he will also suggest adding additional GST for diesel generators.
Currently, the GST rate for automobiles is 28%, and the additional cess rate varies by car type and ranges from 1% to 22%.SUVs are subject to the highest GST rate of 28% as well as a 22% compensatory cess.
Gadkari also requested that the sector concentrate on ethanol and other environmentally friendly alternative fuels.
He also urged the sector to emphasise green hydrogen.
