Gadkari Advocates for Lower GST on Flex-Fuel Vehicles to Boost Biofuel Adoption

ENA Economy 2024-09-03 17:31:12 New Delhi, Sep 3 (KNN) In a move aimed at reducing India's reliance on fossil fuels and promoting biofuels, Union Minister for Road Transport and Highways, Nitin Gadkari, has called for a reduction in the Goods and Services Tax (GST) on flex-fuel vehicles to 12 percent. Speaking at the India Bio-Energy & Tech Expo hosted by the Indian Federation of Green Energy (IFGE), Gadkari emphasized the importance of shifting towards more sustainable fuel options. Flex-fuel vehicles, which are designed to run on a blend of petrol and ethanol or methanol, represent a significant step towards reducing carbon emissions and enhancing energy security. Gadkari highlighted that the current tax regime could be a barrier to the widespread adoption of these environmentally friendly vehicles. We need support from state finance ministers to make this transition smoother, Gadkari said. He specifically mentioned having urged Maharashtra's Finance Minister Ajit Pawar to advocate for this tax reduction in upcoming GST discussions with Union Finance Minister Nirmala Sitharaman. In addition to Maharashtra, Gadkari has also reached out to Uttar Pradesh Chief Minister Yogi Adityanath, requesting similar support for reducing taxes on flex-fuel vehicles in his state. The minister underscored the economic and environmental benefits of reducing fossil fuel imports, which currently cost India around Rs 22 lakh crore annually. He stressed that this financial burden is not just an economic issue but also a significant contributor to air pollution. Gadkari expressed optimism about the positive impacts of promoting biofuels, including potential benefits for the agriculture sector. Encouraging the use of biofuels will not only cut down our fossil fuel imports but will also provide a boost to our farmers by creating new markets for agricultural produce, he noted. With a growing emphasis on sustainability and energy independence, Gadkaris push for a lower GST rate on flex-fuel vehicles is seen as a crucial step towards a greener future for India. The minister's proactive stance underscores the government's commitment to supporting alternative energy sources and reducing the nation's carbon footprint. (KNN Bureau) 39151 https://knnindia.co.in/news/newsdetails/economy/gadkari-advocates-for-lower-gst-on-flex-fuel-vehicles-to-boost-biofuel-adoption 2024-09-03 17:31:12 knnindia.co.in Gadkari Advocates for Lower GST on Flex-Fuel Vehicles to Boost Biofuel Adoption