NEW DELHI: The Ministry of Road Transport and Highways proposed to impose an additional ten percent GST on diesel vehicles. With share prices of auto companies plummeting and companies mounting pressure, Ministry of Road Transport and Highways Minister Nitin Gadkari himself clarified later that the matter is not under the government's consideration.
Speaking at a program organized by the Society of Indian Automobile Manufacturers yesterday morning, the Minister himself disclosed that additional GST will be introduced. The minister also stated that the aim is to reduce air pollution and make it environment-friendly. He also informed that the letter requesting GST increase will be handed over to the Finance Minister in the evening.
Shares of Tata Motors, Mahindra & Mahindra and Ashok Leyland fell by 2.5 percent to 4 percent after the news spread. Since the pressure on the government intensified with this, Gadkari himself announced that additional taxes were not on the agenda. At the same time, he pointed out that the government aims to achieve zero emissions of carbon gases by 2070 and reduce air pollution caused by fuels such as diesel.
'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.' This was Gadkari's speech in the morning. He also called for accelerating the transition to electric and biofuels to avoid vehicular pollution and crude imports. Gadkari had asked to reduce the production of diesel vehicles in 2021 as well.
Diesel vehicles have reduced