Speaking at the 63rd Annual Convention of Society of Indian Automobile Manufacturers (SIAM) Gadkari said he would propose that the Ministry of Finance levy 10% additional GST on diesel driven vehicles to curb use of the fuel.
“I would urge you to reduce production of diesel vehicles. If you don’t reduce, we have to increase taxes. We will increase taxes so much, you will find it difficult to sell diesel vehicles”, Gadkari said.
Sales of diesel vehicles in the Indian market has declined since prices of the fuel was de-regulated in 2014. About 18% of all passenger vehicles sold in the local market run on diesel in the last financial year, from 53% in FY14.
Gadkari said the automobile industry should work on accelerating the transition to electric, bio-fuels to curb vehicular pollution and crude imports.