Say goodbye to diesel soon, or high tax prices will prevent car sales: India warns automakers

By: TP News Date: 9/12/2023 6:47:36 PM

New Delhi:

On Tuesday (12 September), India's road transport minister said he would propose an additional 10% tax on diesel vehicles and warned automakers of even higher levies to come to force them away from diesel burners and cut fuel emissions and pollution.

Nitin Gadkari made the comments at the Society of Indian Automobile Manufacturers (SIAM) annual conference in New Delhi, where executives of Tata Motors, Mahindra and Mahindra, Maruti Suzuki and foreign carmakers such as Mercedes and Volkswagen had gathered.

Gadkari said he will ask the finance minister later on Tuesday for an "additional 10%" goods and services tax on diesel vehicles to tackle pollution-related problems. India currently imposes a 28% tax, and an additional so-called "cess" is levied depending on the vehicles' engine capacity.

"Say bye to diesel soon; otherwise, we will increase so much tax that it will become difficult for you to sell these vehicles," Gadkari told the conference."We have to leave petrol and diesel soon and walk on the new path of being pollution-free... There should be a diversification (by companies) as soon as possible," he warned automakers.