Nitin Gadkari, the union's minister of road transport, announced on Tuesday(September 12) that he will impose an extra 10% Goods and Services Tax (GST) on diesel-powered cars to deter automakers from producing such cars that use the "most polluting" fuel.
"I have kept a letter ready, which I will hand over to the finance minister this evening proposing to put additional 10% GST on diesel vehicles and all engines that run on diesel," said a speaker at a gathering of the auto lobby organisation Society of Indian Automobile Manufacturers (SIAM).
He urged the industry to take suo motu action, otherwise the government will have no option than creating conditions that will compel them to do so.
“Say goodbye to diesel. Take suo motu action, else we will increase the tax so much that you won't be able to sell diesel vehicles,” Gadkari said.
He said that from 335 in 2014 to 28% today, the percentage of diesel cars has decreased over the previous nine years.
Gadkari emphasised the need for the automobile sector to move as quickly as possible away from diesel and towards cleaner fuel options. He emphasised the need of reducing pollution and carbon emissions while highlighting the environmental issues raised by diesel engines.
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