Union Minister Nitin Gadkari Warns Carmakers Of 10% GST Hike On Diesel Vehicles To Curb Production

New Delhi, Sept 12 (KNN) Union Minister for Road Transport & Highways Nitin Gadkari on Tuesday said that the government will be have no option but to raise tax on diesel vehicles if the manufacturers do not limit their production.

Speaking at 63rd Annual SIAM convention in New Delhi, he warned Indian carmakers of this proposed increase in GST on diesel vehicles.

“Say goodbye to diesel... Please stop making them, otherwise we will just increase the tax so much that it would become difficult to sell diesel cars,” he said.

After initial reports suggested that the additional tax hike could be as high as 10 per cent, the minister clarified that no specific proposal for such a hike was currently under consideration.

“There is an urgent need to clarify media reports suggesting an additional 10% GST on the sale of diesel vehicles. It is essential to clarify that there is no such proposal currently under active consideration by the government. In line with our commitments to achieve Carbon Net Zero by 2070 and to reduce air pollution levels caused by hazardous fuels like diesel, as well as the rapid growth in automobile sales, it is imperative to actively embrace cleaner and greener alternative fuels. These fuels should be import substitutes, cost-effective, indigenous, and pollution-free,” he said in a post on X, formerly Twitter.

Calling diesel a “hazardous fuel”, the minister said that the rising demand has led to India relying heavily on fuel imports.

The number of diesel cars has fallen from 53 per cent in 2014, to 18 per cent now, he said, calling it a “good sign”.  (KNN Bureau)