Nitin Gadkari is one of the most accomplished ministers of the Union Cabinet. Its biggest evidence is the rapid construction of national highways and express highways across the country. This is the period when car sales are booming. It is a fact that people are increasingly concerned about the environmental pollution caused by vehicles. Taking this into account, Gadkari also called for a shift to electric vehicles years ago. Today, the number of electric vehicles has increased. Electric vehicles are becoming the vehicles of the future because they don't pollute the environment as well as they reduce fuel costs. But still, mostly diesel vehicles are used for freight transportation in the country. Diesel used to have a good price difference compared to petrol. Also, diesel vehicles are more efficient. One of the factors that make truck drivers rely on diesel vehicles the most is the fact that they can rely on the machine. Another is that diesel vehicles have lower maintenance and service costs than petrol vehicles. In India, lakhs of people depend on the transport sector for their livelihood. Similarly, there are big players who control the transportation of goods.
Diesel vehicles are used to transport the materials required for the construction sector. So no one can stop it at once, but in a phased manner. It is not appropriate to increase the GST of diesel vehicles by 10 percent at once. When such announcements are not part of the budget, it can lead to a huge backlash in the auto market. After the announcement of Union Minister, the stock prices of auto companies fell sharply. The central government has mandated the GST Council to take and announce such decisions. The next day, the minister had to clarify that the government is not considering raising the GST on diesel vehicles, which is proof that the minister's announcement on his own was inappropriate.
The announcement was made at a function organized by the Association of Automobile Manufacturing Companies that additional GST will be imposed on diesel vehicles and a letter to this effect will be forwarded to the Finance Minister. Shares of Tata Motors, Mahindra & Mahindra and Ashok Leyland fell between 2.5 percent and 4 percent after the news spread. The minister retracted the announcement and said that the goal is to make the emission of carbon gases zero by 2070. That is many years away. Even if GST is completely removed, nobody will be buying petrol and diesel vehicles then.