Union Minister Nitin Gadkari on Tuesday said that there is not any proposal under active consideration by the government over an additional 10 per cent GST on the sale of diesel vehicles.
Issuing a clarification on X, formerly Twitter, the minister said, “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.”
This comes after media reports stated that the Union Road Transport and Highways Minister while speaking at the 63rd Annual SIAM convention in New Delhi said that he will seek a “pollution tax” in the form of additional GST of 10 per cent on diesel vehicles and gensets in order to cut down on air pollution.
ADVERTISEMENT
“I am going to handover a letter to the Finance Minister this evening stating that an additional 10 per cent GST be put on diesel-powered vehicles,” Gadkari said, adding that said the rising level of pollution is a health hazard for citizens, PTI quoted.
At the event, Gadkari said, “Say goodbye to diesel… Please stop making them, otherwise we will just increase the tax so much that it would become difficult to sell diesel cars.” He said he will propose additional GST on diesel-powered generators as well.
In his clarification on X, Gadkari wrote, “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.”
Currently, automobiles are taxed at 28 per cent GST, with additional cess ranging from 1 per cent to 22 per cent depending on the type of vehicle.
ADVERTISEMENT
SUVs attract the highest GST at the rate of 28 per cent along with a compensation cess at 22 per cent.