Nitin Gadkari Urges Automakers To Switch To Alternative Fuels In Wake Of Air Pollution

Nitin Gadkari, Union Minister of Road, Highways and Transport is making headlines as he has been putting out statements regarding the diesel engines in cars produced and sold in India. Though, the minister has clarified that he is not particularly against diesel fuel but is just concerned about the pollution caused by them, henceforth, he is repeatedly addressing the issue.

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Will there be a 10 per cent additional tax on diesel engines?

There has been a lot of controversy spurring around the topic that the government might levy a 10 per cent additional GST on diesel engine vehicles. During the annual convention of the Automobile Manufacturers' Association (SIAM) on September 12, Gadkari addressed the critical issue of rising pollution in India. He proposed the idea of potentially increasing taxes, specifically a 10 per cent additional GST, on diesel engines and vehicles as a means to discourage their sales and gradually phase them out. However, he later clarified via the social media platform X that there was no active government proposal for such a tax adjustment and that no such rule would be implemented in the near future.

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

Diesel - Major Pollution Contributor

Gadkari emphasised the significant pollution risks associated with diesel and its adverse health effects in India. The MoRTH is appealing to automobile manufacturers to avoid the production of diesel engine cars as they contribute majorly to air pollution and also urging the automobile sector to adopt alternative fuels. He clarified that his intention was not to oppose any industry but rather to promote eco-friendly options. Additionally, he highlighted the government's efforts in providing incentives for electric vehicles.

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Tax on vehicles In India

In India, automobiles are subject to a 28 per cent GST. Furthermore, an additional cess is imposed, varying from one per cent to 22 per cent, based on the vehicle type. SUVs and MPVs are imposed with the highest GST rate of 28 per cent coupled with a 22 per cent compensation cess. The overall tax imposition on utility vehicles calculates up to 50 per cent.