Nitin Gadkari asks State FMs to pitch for a GST Cut to 12% on Flex-Fuel Vehicles

Union Minister Nitin Gadkari said Monday that state finance ministers might consider cutting the Goods and Services Tax (GST) on flex-fuel vehicles to 12%.

Addressing IFGE’s India Bio-Energy and Tech Expo, Gadkari also stated that there is a need to limit fossil fuel imports and promote the usage of biofuels.

“We need help from the finance ministers of various states. I urged Maharashtra’s FM to attend the conference and propose lowering the GST on flex-fuel engine vehicles,” he remarked.

Cars that are flex-fuel compatible can run on multiple types of fuel as well as a blend. Typically, a blend of petrol and ethanol or methanol is utilized.

The road transport and highways minister said he has asked Uttar Pradesh Chief Minister Yogi Adityanath to consider lowering taxes on flex-fuel vehicles.

In a separate discussion with Maharashtra Finance Minister Ajit Pawar, Gadkari advised him to attend a GST meeting with Union Finance Minister Nirmala Sitharaman on the subject.

Gadkari further stated that India imports fossil fuels worth up to Rs.22 lakh crore per year, which is both an air pollution and economic crisis.

“So, now by starting this, a day will come when we will reduce our imports and will encourage bio-fuel,” explained the minister.

And, as a result of reducing fossil fuel imports and increasing biofuel production, the minister believes that the agriculture sector will benefit the most.