No proposal to levy 10% additional GST on diesel vehicles, Gadkari clarifies

Union Road Transport and Highways Minister Nitin Gadkari on Tuesday clarified that there was no proposal to levy a 10 per cent additional GST on diesel vehicles, after media reports suggested that such a move may be under consideration.

Earlier today, speaking at the 63rd Annual SIAM convention, Gadkari said that he would "seek a pollution tax" in the form of an "additional GST of 10 per cent on diesel vehicles" in order to tackle air pollution.

"I am going to hand over a letter to the Finance Minister this evening stating that an additional 10 per cent GST be put on diesel-powered vehicles," Gadkari said.

"Say goodbye to diesel... Please stop making them (diesel vehicles), otherwise we will just increase the tax so much that it will become difficult to sell diesel cars," Gadkari said.

He said he would propose additional GST on diesel-powered generators as well.

Gadkari also asked the industry to focus on environment-friendly alternative fuels like ethanol.

(With PTI inputs)