Union Minister Nitin Gadkari Clarifies Remarks on Diesel Vehicle Taxation

Union Minister Nitin Gadkari Clarifies Remarks on Diesel Vehicle Taxation

Union Minister Nitin Gadkari has clarified his recent remarks on the taxation of diesel vehicles, stating that there is no proposal to levy a tax on such vehicles. He emphasized that his intention was to convey the importance of reducing pollution and encouraging automobile manufacturers to take steps in this direction.

No Tax Proposal on Diesel Vehicles

Gadkari made it clear that there is no plan to impose a tax on diesel vehicles, contrary to the controversy that arose after his earlier statement suggesting a 10 percent tax on diesel-run vehicles to combat emissions.

Diesel Pollution Concerns

While he clarified the tax issue, Gadkari reiterated the environmental concerns associated with diesel fuel, emphasizing its hazardous impact on air quality and public health in India. He expressed the need to address pollution issues and encouraged the automotive industry to focus on alternative fuels as a solution.

Government’s Incentives for Electric Cars

Gadkari highlighted that the government already provides incentives for electric cars and stressed the importance of reducing pollution through the adoption of alternative fuels.

Previous Remarks at SIAM Convention

At the annual convention of the Society of Indian Automobile Manufacturers (SIAM), Gadkari had raised concerns about rising pollution levels and suggested the possibility of increasing taxes on diesel vehicles to discourage their sale. He had called for an additional 10 percent GST on diesel engines and vehicles as a way to phase out diesel vehicles.

Clarification on Social Media

Following the controversy and media reports, Gadkari took to social media to clarify that there was no such proposal actively being considered by the government regarding additional GST on diesel vehicles.

The current GST rate for automobiles is 28 percent, with an additional cess ranging from 1 percent to 22 percent based on the type of vehicle. SUVs attract the highest GST rate of 28 percent along with a 22 percent compensation cess.

Gadkari’s clarification seeks to clear the air on the government’s stance on diesel vehicle taxation while underlining the importance of addressing pollution concerns through alternative fuel technologies.

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