Gadkari clarifies no plan to impose 10% tax on diesel engine vehicles

New Delhi, September 12 (IANS) Union Transport Minister Nitin Gadkari on Tuesday clarified that the Centre has not proposed to impose an additional 10 per cent tax on diesel engine vehicles as media reports suggested.

Earlier, the reports had said that Gadkari would be writing a letter to Union Finance Minister Nirmala Sitharaman on Tuesday evening proposing the additional tax in an attempt to reduce pollution.

"There is an urgent need to clarify media reports suggesting an additional 10 per cent GST on the sale of diesel vehicles. It is essential to clarify that there is no such proposal currently under active consideration by the government. In line with our commitments to achieve Carbon Net Zero by 2070 and to reduce air pollution levels caused by hazardous fuels like diesel, as well as the rapid growth in automobile sales, it is imperative to actively embrace cleaner and greener alternative fuels. These fuels should be import substitutes, cost-effective, indigenous, and pollution-free," he said on X (formerly Twitter), soon after reports quoting him proposing the aforementioned tax appeared.

Addressing the 63rd annual SIAM convention earlier in the day, Gadkari termed diesel as a “hazardous” fuel, and noted that the country has to import the fuel to meet the demand, as per reports.

He also urged carmakers to reorient their manufacturing to focus on environment-friendly fuels like ethanol and green hydrogen, a step which would facilitate introduction of more electric vehicles.