Gadkari to take up auto sector's demand for GST reduction with Sitharaman

Union Minister for Road Transport and Highways, Nitin Gadkari on Thursday assured the automobile industry of support from the centre, saying he will take up the industry's demand of GST reduction with the Finance Minister Nirmala Sitharaman.

He also said there is no plan to ban petrol and diesel vehicles.

According to an official statement, Gadkari said that the industry has asked for a reduction in GST on petrol and diesel vehicles due to rise in cost and implementation of BS-VI norms and has conveyed that even if GST is reduced for some time, it will help the sector to increase vehicle sales.

He was speaking at 59th Annual Convention of Society of Indian Automobile Manufacturers (SIAM) on Thursday.

Gadkari said, "GST on electric vehicles has been reduced from 12 per cent to 5 per cent. I will propose to the finance ministry to make the same benefit available for hybrid vehicles."

The Union Minister said that the government is trying to bring out the scrapping policy soon, which will lower production costs to a huge extent, the statement said.

"I also want to clarify that though there have been talks that the government is planning to ban petrol and diesel vehicles, we are not going to do anything like that," he added.

( With inputs from ANI )