Extra 10% GST on diesel cars? Not under ‘active consideration’, Gadkari clarifies

Union Minister for Road Transport & Highways Nitin Gadkari on Tuesday (September 12) issued a clarification on social media that no proposal to impose an additional 10 per cent GST on the sale of diesel vehicles was under active consideration by the government after media reports appeared suggesting Gadkari has proposed so.

“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 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,” read Gadkari’s post on X (Twitter).

Earlier, media reports suggested that Gadkari had proposed an additional 10 per cent GST on the purchase of diesel cars in India, expressing concern about the pollution caused by diesel vehicles. He was quoted as saying that the number of diesel cars on the road should be reduced and the extra tax would act as a deterrent.

“Diesel vehicles will have to be reduced. There has been a decline in diesel vehicles after 2014. Earlier it was 52 per cent, now it is 18 per cent. Diesel cars should not be made. Diesel vehicles should be used less,” India Today quoted Gadkari as saying.

“I will write to the finance minister to impose an additional 10 per cent additional tax on diesel vehicles. Diesel is causing more pollution. There should be fewer vehicles using diesel,” he was quoted as saying.