Road Transport Minister Nitin Gadkari on Tuesday clariffied reports on additional tax on diesel engine vehicles and said that there is no such proposal currently under active consideration by the government.
Nitin 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. 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.”
Earlier there were reports that in another attempt to curb air pollution, the Union governmnet is planning to to propose imposing an additional 10% tax on diesel engine vehicles.
On Tuesday, shares of automakers Tata Motors, Mahindra and Mahindra and Ashok Leyland fell between 2.5% and 4% after the minister’s comments.
As measures to air pollution, the government is already planning to ban BS III petrol and BS IV diesel four-wheelers immediately in Delhi, Gurugram, Faridabad, Ghaziabad and Gautam Buddh Nagar if the AQI crosses the 400 mark.
The Commission for Air Quality Management (CAQM), a statutory body formed under an Act in 2021, had amended the Graded Response Action Plan (GRAP), first notified in 2017, in July last year also to ensure proactive implementation of anti-air pollution steps based on forecasts —up to three days in advance. Earlier, the authorities would implement these measures, including banning construction and demolition work, entry of high-emission vehicles and the use of coal and firewood, only after the pollution level touched a particular threshold.
(With Reuters inputs)
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