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Nitin Gadkari says no plans for additional tax on diesel vehicles; clarifies his earlier statement

Speaking at SIAM 63rd Annual Convention (SIAMAC23) in Delhi, as a Chief Guest, Union Minister for Road, Transport and Highways, Nitin Gadkari, proposed a 10 percent additional GST on the sale of diesel vehicles in the India. After his statement hit the headlines, Gadkari issued a clarification on X (formally Twitter), stating "there is no such proposal currently under active consideration by the government".

Addressing the SIAMAC23, Union Minister Nitin Gadkari, said "I am requesting the Finance Minister to impose an additional 10 per cent GST on diesel vehicles/engines, this is the only way to phase out diesel vehicles."

He also stated that this is the right time to move on from diesel and petrol to biofuels, alternative fuels, and renewable energy sources for mobility to reduce dependancy on the import of hazardous fuels, such as diesel. Gadkari further added, "Say goodbye to diesel... Please stop making them, otherwise we will increase tax so much that it would be difficult to sell diesel cars."

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After his statement, the shares of major vehicle manufacturers, such as Tata Motors, Maruti Suzuki, and Ashok Leyland, along with oil makers, namely IOC, BPCL, and GAIL, witnessed a sudden fall.

However, the Union Minister for Road, Transport, and Highways, issued a clarification via the social media platform X. He said, "There is an urgent need to clarify media reports suggesting an additional 10% GST on the sale of diesel vehicles. It is essential to clarify that there is no such proposal currently under active consideration by the government. In line with our commitments to achieve Carbon Net Zero by 2070 and to reduce air pollution levels caused by hazardous fuels like diesel, as well as the rapid growth in automobile sales, it is imperative to actively embrace cleaner and greener alternative fuels. These fuels should be import substitutes, cost-effective, indigenous, and pollution-free."

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