Union road transport minister Nitin Gadkari recently provided clarification regarding a proposal to increase the Goods and Services Tax (GST) on diesel-powered vehicles. Initially, Gadkari had suggested that he would recommend a 10% GST hike on such vehicles to the finance minister.
However, within two hours of making this statement, Gadkari issued a clarification stating that there is currently no proposal under active consideration by the government to raise the GST on the sale of diesel vehicles. He emphasized the government’s commitment to achieving Carbon Net Zero by 2070 and reducing air pollution caused by diesel fuels. The government is actively encouraging the adoption of cleaner and greener alternative fuels that are indigenous, cost-effective, and pollution-free.
Gadkari had earlier spoken at an event organized by the Society of Indian Automobile Manufacturers (SIAM), where he urged the automotive industry to shift away from diesel in favor of cleaner fuel alternatives. He highlighted the reduction in the market share of diesel cars from 33% in 2014 to 28% at present as a positive industry trend. Gadkari stressed the importance of addressing environmental concerns associated with diesel engines and the need to curb pollution and carbon emissions.
Additionally, Gadkari emphasized the urgency of improving vehicle and road engineering to reduce road accidents and fatalities, underscoring the importance of a collective effort in this direction.