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Gadkari Calls Diesel “Hazardous Fuel” – Gives Clarification Regarding Additional Tax On Diesel Cars
There is no doubt that diesel cars cause a lot of pollution. However, these vehicles remain a favourite for many Indian car buyers due to their low running costs compared to petrol cars.
To overcome this issue caused by diesel cars, Union Minister Nitin Gadkari has earlier commented that he is considering sending a proposal to increase GST on diesel cars by an additional 10 per cent. The motive behind this idea is to discourage car manufacturers from selling and developing diesel cars.
This idea to increase GST on diesel cars will significantly increase the prices in such a way that it will no longer become feasible for an average buyer to overcome the initial cost demanded by a diesel car. This will help decrease the sale of diesel cars in the market.
In addition to that, this reduced demand for diesel cars in the Indian market will indirectly pressure automakers to focus on other technologies and reduce the development budget for diesel cars - Gradually marking the end of diesel cars in the country.
However, Gadkari has now added a clarification on the earlier comment via social media platform X (Previously Twitter). This clarification was much-needed considering many automakers continue to rely on diesel car sales for their revenue.
Gadkari tweeted, "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."
While this is widely considered by many as a U-turn on the earlier comment made by Gadkari, this new statement adds much-required clarity to the previous statement reported by PTI regarding the additional GST on diesel cars.
"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." Gadkari added.
Thoughts: While the latest statement from Gadkari confirms that there will be no additional tax on diesel cars, he did suggest embracing "cleaner and greener alternative fuels". This is a crucial statement and hints at the use of alternative fuels in the future.
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