Union minister Nitin Gadkari clarified, government not planning to levy tax on diesel vehicles
By MYBRANDBOOK
Union minister Nitin Gadkari clarified his remarks on taxation of diesel vehicles and said that he wants to convey to automobile manufacturers that there is a need to take action on reducing pollution and also added that there is no proposal to levy a tax on such vehicles.
In the beginning of the week, the minister said that there is a need to levy a 10 percent tax on diesel-run vehicles to help cut emissions which generated lots of controversy.
"I am not against diesel fuel, and neither are we going to levy any tax on diesel vehicles," Gadkari told a news source.
The road transport and highways minister highlighted that diesel is very hazardous from a pollution point of view and is really causing health problems in the country.
He also stressed upon the fact that he is not against any industry and pointed out that the government is already giving incentives for electric cars.
"So my suggestion to the industry is that the best way to reduce pollution is to concentrate on alternative fuel," he added.
At the annual convention of automobile manufacturers body SIAM, Gadkari said that rising pollution levels pose a significant health risk and there is a case for increasing taxes to dissuade the sale of diesel vehicles.
"I am requesting the Finance Minister to impose an additional 10 percent GST on diesel engines and vehicles. This is the only way to phase out diesel vehicles," he had said. But soon after, he took to social media platform X to clarify the government's position.
"It is essential to clarify that there is no such proposal currently under active consideration by the government," he had said in a post on X, referring to media reports quoting him as suggesting an additional 10 per cent GST on diesel vehicles.
Automobiles are currently taxed at 28 percent GST, with additional cess ranging from 1 percent to 22 percent depending on the type of vehicle.
SUVs attract the highest GST at the rate of 28 percent along with a compensation cess at 22 percent.
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