Government not planning to levy any tax on diesel vehicles, says Nitin Gadkari

Union Minister Nitin Gadkari, in an effort to provide clarity regarding his statements regarding the taxation of diesel vehicles, stated on Thursday that he wanted to convey to automobile manufacturers to take steps to reduce pollution, and also added that there is no proposal to levy tax on such vehicles.

Earlier this week, the road, transport and highway minister's remarks regarding the need to levy 10 per cent tax on diesel-run vehicles to help cut emissions had generated lots of controversy. I am not against diesel fuel and neither we are going to levy any tax on diesel vehicles, Gadkari told CNBC-TV18.

The Minister for Road Transport and Highways pointed out that, from an environmental perspective, diesel is highly detrimental and is significantly contributing to health issues in the nation. Gadkari emphasised that he is not against any industry and pointed out that the government is already giving incentives for electric cars. So my suggestion to the industry is that best way to (reduce pollution) is to concentrate on alternative fuel, he added.

On September 12, speaking at the annual convention of automobile manufacturers body SIAM, Gadkari had said rising pollution level is a serious health concern and there is a case for increasing taxes to dissuade sale of diesel vehicles. I am requesting the Finance Minister to impose an additional 10 per cent GST on diesel engines/vehicles. This is the only way to phase out diesel vehicles, he had said