'Forget diesel vehicles, will hike taxes if you continue to sell them'; Gadkari proposes 10 percent hike in GST on diesel cars

NEW DELHI: Union Transport and Highways Minister Nitin Gadkari has proposed a 10 per cent hike in diesel cars, in a bid to discourage pollution-creating vehicles.

“Today evening, I am meeting the Union finance minister (Nirmala Sitharaman). I have already prepared a letter where I proposed an additional 10 percent GST,” Gadkari said in an event organized by the industry body Society of Indian Automobile Manufacturers in Delhi focused on sustainable mobility.

In a good sign, he said diesel vehicle sales have declined from 52 percent in 2014, to 18 percent now.

India aims to meet its 50 percent energy needs through renewable sources by 2030, and this additional GST may disincentivise fresh buyers.