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    Home / News / Auto News / Nitin Gadkari proposes 10% GST hike on diesel vehicles
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    Nitin Gadkari proposes 10% GST hike on diesel vehicles
    Diesel cars have decreased from 35% in 2014 to 28% in India now

    Nitin Gadkari proposes 10% GST hike on diesel vehicles

    By Pradnesh Naik
    Sep 12, 2023
    01:00 pm

    What's the story

    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.

    Concern

    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.

    Future

    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.

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