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End of the diesel cars in india? 10% tax on diesel cars suggested by Nitin Gadkari

End of the diesel cars in india? 10% tax on diesel cars suggested by Nitin Gadkari 

End of diesel cars


Nitin Gadkari, the minister of road transport, emphasised that "there is no such proposal currently under active consideration" after various media reports suggested that the centre was set to levy an additional 10% GST on the sale of diesel vehicles.

According to reports, the minister suggested that if there is excessive use of diesel-powered vehicles and generators, he would consider placing an additional 10% tax on those fuels."I am going to hand over a letter to the Finance Minister this evening stating that an additional 10% GST be put on diesel-powered vehicles," were his exact words.

He continues, "Say goodbye to diesel...," adding that it is a dangerous fuel that puts the nation's economy at risk. Please cease producing them so that we don't have to raise the levy so high that diesel car sales are hampered.

Then, according to numerous media sources, "Centre is likely to impose additional 10% GST on the sale of diesel vehicles." Soon after, shares of automakers including Tata Motors and Maruti Suzuki dropped precipitously.

Gadkari later clarified the matter on Twitter, writing that it was necessary to address media claims that suggested an additional 10% GST on the sale of diesel vehicles. It is crucial to make it clear that the government is not now actively considering any such plan. It is crucial to aggressively support cleaner and greener alternative fuels in order to meet our goals to reach Carbon Net Zero by 2070, reduce air pollution levels brought on by dangerous fuels like diesel, and keep pace with the explosive boom in vehicle sales. These fuels ought to be pollution-free, cost-effective import alternatives that are locally produced.

Diesel fuel is mostly used to power larger commercial and utility vehicles, as well as some industrial equipment and engines like generators.Currently, the GST rate for automobiles is 28%, and the additional cess rate varies by car type and ranges from 1% to 22%. SUVs are subject to the highest GST rate of 28% as well as a 22% compensatory cess.


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