Union Transport and Highways Minister Nitin Gadkari has proposed a 10 per cent hike in diesel cars, in a bid to discourage pollution-creating vehicles.“Today evening, I am meeting the Union finance minister (Nirmala Sitharaman). I have already prepared a letter where I proposed an additional 10 per cent GST,” Gadkari said in an event organised by the industry body Society of Indian Automobile Manufacturers in Delhi focused on sustainable mobility.In a good sign, he said diesel vehicle sales have declined from 52 per cent in 2014, to 18 per cent now. 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…— Nitin Gadkari (@nitin_gadkari) September 12, 2023 India aims to meet its 50 percent energy needs through renewable sources by 2030, and this additional GST may disincentivise fresh buyers.Honda and Maruti Suzuki India, two automakers, have already ceased production of diesel vehicles.Notably, the current GST rate for cars is 28 percent, with an additional cess ranging from 1 per cent to 22 per cent depending on the kind of vehicle. The highest GST rate, 28 per cent, is currently applied to SUVs, with a 22 per cent compensatory cess.
