NEW DELHI:Union minister Nitin Gadkari sought to explain his comments regarding the taxation of diesel vehicles on Thursday, adding that there is no proposal to do so. Instead, he intended to urge automakers to take action to reduce pollution. The road, transport, and highway minister’s comments earlier this week about the need to impose a 10% tax on diesel-powered vehicles in order to assist reduce emissions had caused a lot of controversy. Gadkari said to news channel, “I am not against diesel fuel, and we are not going to collect any tax on diesel automobiles. According to the minister of highways and road transport, diesel is extremely dangerous for the environment and is seriously harming the nation’s health.Gadkari emphasised that he is not against any one business and added that the government currently offers incentives for electric automobiles. “My advice to the industry is to focus on alternative fuel as the best method to (reduce pollution),” he stated. Speaking on September 12 at the SIAM annual conference, Gadkari cautioned that rising pollution levels pose a serious threat to public health and that increased taxes may be required to deter the sale of diesel cars. “I am requesting that the Finance Minister increase the GST on diesel vehicles and engines by 10%.Therefore, he continued, “my recommendation to the industry is to focus on alternative fuel as the best method to (reduce pollution). Speaking on September 12 at the SIAM annual conference, Gadkari warned that increasing pollution levels are a severe health concern and that higher tariffs may be necessary to discourage the sale of diesel automobiles. “I am asking the Finance Minister to add an additional 10% GST to diesel engines and cars. The only way to phase out diesel automobiles is through this, he had stated. However, he quickly went on social media platform X to explain the government’s stance.
In response to media reports citing him as advocating an additional 10% GST on diesel automobiles, he had written on X, “It is essential to clarify that there is no such proposal currently under active consideration by the government.” 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.
