Gadkari adds fuel to dreams of diesel-less Indian roads, but can it be done?
Nitin Gadkari on Tuesday ignited concerns in the industry when he suggested he may propose levying an additional 10 per cent ‘pollution’ tax on sales of diesel vehicles. Well-intentioned as the warning may have been for it seeks to curb the black smoke on roads in one of the most polluted countries, automobile companies and investors were not enthused.
Gadkari warned that just like India pushed through stricter fuel emission norms against opposition from the industry, it will similarly drive up taxes to push out diesel vehicles.
“Today (Tuesday) evening, I am scheduled to meet Union Finance Minister (Nirmala Sitharaman).
I have already drafted a letter where I have proposed an additional 10 per cent GST (on purchase of diesel cars),” Gadkari said yesterday. He proceeded to warn that taxes on diesel may be increased to such an extent that it would become difficult for auto companies to sell the variants.
Gadkari later clarified that the central government is currently not considering this proposal actively.
Auto stocks ended the previous trading session with losses of 1.86 per cent, oil & gas stocks weren't spared either.
