Nitin Gadkari proposes 10% GST hike on diesel vehicles
Union Road Transport and Highways Minister Nitin Gadkari has proposed an additional 10% goods and services tax (GST) on diesel-powered vehicles and generators in India. The move aims to discourage the production of the "most polluting" fuel on our shores. Speaking at a Society of Indian Automobile Manufacturers (SIAM) event, Gadkari also urged the industry to shift to cleaner fuel alternatives or face government intervention.
Diesel car usage has gone down
Highlighting the environmental concerns associated with diesel engines, Gadkari stressed the importance of curbing pollution and carbon emissions. He noted that the share of diesel cars has decreased from 35% in 2014 to 28% now. The proposed GST hike on diesel-powered vehicles is expected to encourage both manufacturers and consumers to explore other greener transportation options, such as biofuel-powered cars or electric vehicles.
Pushing for cleaner alternatives to prove beneficial in long run
Diesel engines have long been linked to high levels of pollution and carbon emissions. Pushing for cleaner alternatives will not only boost the development of batteries and electric motors required in EVs but also aid in the development of the necessary infrastructure in India. These enhancements in vehicular technology, along with road engineering, will also help reduce the number of accidents and related fatalities in the country, noted Gadkari.
