The Indian government is considering imposing an additional 10% tax on diesel engine vehicles in an attempt to reduce pollution from diesel vehicles. The proposal was made by Road Transport Minister Nitin Gadkari on Tuesday.
Union Minister Nitin Gadkari on Tuesday said he will seek a “pollution tax” in the form of additional GST of 10 per cent on diesel vehicles and gensets in order to cut down on air pollution.
Speaking at the 63rd Annual SIAM convention here, the Union Road Transport and Highways Minister said the rising level of pollution is a health hazard for citizens.
“I am going to handover a letter to the Finance Minister this evening stating that an additional 10 per cent GST be put on diesel-powered vehicles,” Gadkari said.
Most of the commercial vehicles in the country currently run on diesel.
In the passenger vehicle segment, various carmakers including Maruti Suzuki India and Honda have already stopped manufacturing diesel cars.
Gadkari said the contribution of diesel cars has already come down drastically in the country and the manufacturers need to stop selling them in the market.
Diesel vehicles are a major source of air pollution in India. They emit harmful pollutants such as nitrogen oxides, particulate matter, and sulfur dioxide. These pollutants can cause respiratory problems, heart disease, and cancer.
“Say goodbye to diesel… Please stop making them, otherwise we will just increase the tax so much that it would become difficult to sell diesel cars” Gadkari said.
The additional tax is expected to discourage people from buying diesel vehicles and encourage them to switch to cleaner fuel options such as electric vehicles. It is also expected to generate revenue that can be used to fund clean air initiatives.
The proposal has been met with mixed reactions. Some people support it, saying that it is a necessary step to reduce pollution. Others oppose it, saying that it will increase the cost of living for people who rely on diesel vehicles.