Nitin Gadkari suggests 10% additional GST on Diesel Vehicles

Union Minister Nitin Gadkari stated on Tuesday that he will seek a “pollution tax” in the format of a 10% additional GST on diesel vehicles and generators to reduce air pollution.

The Union Road Transport and Highways Minister stated at the 63rd Annual SIAM convention here that rising levels of pollution pose a health risk to inhabitants.

“This evening, I will hand over a letter to the Finance Minister requesting that an additional 10% GST be imposed on diesel-powered vehicles,” Gadkari added.

The majority of commercial vehicles in the country today run on diesel. Several carmakers, including Maruti Suzuki India and Honda, have already ceased production of diesel vehicles in the passenger vehicle category.

According to Gadkari, the contribution of diesel cars in the country has already decreased significantly, and manufacturers must stop selling them in the market.

He described diesel as a dangerous fuel and stated that the country must import the fuel to meet demand.

“Bye, bye, diesel…” Please stop building them; else, we will raise the tax so much that diesel vehicles will be tough to sell’, Gadkari warned.

He also stated that he will propose an extra GST on diesel-powered generators.

Automobiles are currently taxed at a rate of 28% GST, with additional cess ranging from 1% to 22% depending on the kind of vehicle. SUVs are subject to the highest GST rate of 28%, as well as a compensating cess of 22%.

Gadkari also urged the industry to prioritise environment friendly alternative fuels such as ethanol. He also urged the industry to prioritise green hydrogen.