No Proposal On 'Pollution Tax' On Diesel Vehicles Under 'Active Consideration': Nitin Gadkari

Nitin Gadkari was speaking at the 63rd Society of Indian Automobile Manufacturers (SIAM) convention in New Delhi

Earlier in the day it was reported that the Centre is planning to propose imposing an additional 10 per cent tax on diesel engine vehicles as "pollution tax" in a bid to reduce pollution.

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Union Road and Transport Minister Nitin Gadkari on Tuesday in a clarification rejected claims of news reports suggesting an additional 10 per cent  GST on the sale of diesel vehicles. In a tweet, he said, "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."

Gadkari was speaking at the 63rd Society of Indian Automobile Manufacturers (SIAM) convention in New Delhi. 

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

Earlier in the day it was reported that the Centre is planning to propose imposing an additional 10 per cent tax on diesel engine vehicles as "pollution tax" in a bid to reduce pollution from diesel vehicles in India, the world's third largest car market. According to news agency Reuters, Gadkari on Tuesday said that he will make the proposal to the finance minister later in the day. The minister said that he has drafted a letter and intends to meet with Finance Minister Nirmala Sitharaman meeting to request the GST hike.

The minister also asked the industry to focus on green hydrogen.

In a bid to reduce air pollution, Gadkari on August 29 unveiled the world's first ethanol-powered car Toyota Innova. The world's first prototype of BS-6 (Stage II) ‘Electrified Flex Fuel Vehicle’ is developed by Toyota Kirloskar Motor in an effort to enhance and promote the use of clean energy in the country.