I am not against diesel fuel, says Gadkari days after talk on additional tax

Union Minister for Road Transport and Highways, Nitin Gadkari clarified on Thursday that he is not against diesel fuel. Seeking to clarify his remarks on additional tax on diesel engine-powered vehicles, Gadkari said that he wanted to convey to the automobile manufacturers to take steps to reduce pollution, reported PTI. The minister reportedly further added that there is no proposal to levy tax on diesel vehicles.

Earlier this week, Nitin Gadkari's remarks regarding an additional 10 per cent tax on diesel engine-powered vehicles to help cut emissions generated a lot of controversy. He later clarified that there is no such proposal under active consideration by the government. The minister reportedly has clarified that remark by saying that he is not against diesel fuel and the government is not going to levy any tax on diesel vehicles.

Gadkari has also noted that from the pollution point of view, diesel is very hazardous and it is really causing health problems in India. Keeping an eye on that, he suggested that the automobile industry should focus on using alternative fuels in their respective vehicles. "My suggestion to the industry is that the best way to reduce pollution is to concentrate on alternative fuel," Gadkari reportedly said. He also reportedly emphasised that he is not against any industry and pointed out that the Indian government is already giving incentives for electric cars.

There is an urgent need to clarify media reports suggesting an additional 10% 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…

— Nitin Gadkari (@nitin_gadkari) September 12, 2023

On September 12, speaking at the annual convention of automobile manufacturers' body SIAM, Gadkari said rising pollution level is a serious health concern in India and there is a case for increasing taxes to dissuade the sales of diesel vehicles. "I am requesting the Finance Minister to impose an additional 10 per cent GST on diesel engines/vehicles. This is the only way to phase out diesel vehicles," he reportedly said. However, soon after that, 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," Gadkari wrote in a social media post, referring to the media reports quoting him as suggesting an additional 10 per cent GST on diesel vehicles.

Currently, automobiles in India are taxed at 28 per cent GST. Additionally, cess is applied ranging between one per cent to 22 per cent depending on the type of vehicle. SUVs and MPVs attract the highest GST at the rate of 28 per cent along with a compensation cess at 22 per cent. This takes the total tax incidence for utility vehicles to 50 per cent.