Mr Gadkari stated that India’s dependence on fuel imports is a result of the growing demand.
Nitin Gadkari, the Union Transport Minister, has cautioned Indian carmakers that the government will have to increase taxes on diesel vehicles and hinder their sales if they do not restrict their production.
Speaking at the 63rd Annual SIAM convention in New Delhi, Mr Gadkari said: “Let us stop making diesel… otherwise we will just raise the tax so high we can’t sell diesel cars.”
The minister stated that despite initial reports suggesting that the additional tax increase could reach 10%, no specific proposal for such a rise was being considered.
“It is imperative to elucidate the media’s suggestion of an additional 10% GST on diesel vehicle sales. It is crucial to emphasize that there is no government proposal currently under active consideration, and this aligns with our commitments to achieve Carbon Net Zero by 2070 and reduce air pollution caused by hazardous fuels like diesel. We must actively embrace cleaner and greener alternative fuel options. These fuel types should be import-friendly, cost-effective, indigenous, undrained, etc.” In a post on X, formerly Twitter,
Presently, cars are subject to 28% GST and an extra cess (with rates ranging from 1% to 22%), while SUVs are taxed the highest at 22% GST plus their cesses.
The minister labeled diesel a “hazardous fuel” and highlighted that India’s growing demand has resulteDive to the importation of fuel, there is 18% less diesel cars now from 53% in 2014.This is ostensibly uplifting.
The minister urged car manufacturers to shift their production towards environmentally friendly options such as ethanol and hydrogen, which could facilitate the introduction of electric cars on Indian roads.
Maruti Suzuki and Honda have discontinued the production of diesel-powered passenger cars.