GST on diesel vehicles: Price will increase...!?

Union minister Nitin Gadkari said he plans to levy an additional 10% GST on diesel vehicles. The imposition of additional GST on diesel vehicles has increased the prices of vehicles such as cars. He said the move was made to reduce the use of diesel vehicles that pollute the environment. He said he will send a letter of request to the Ministry of Finance this evening to collect an additional 10% GST on diesel vehicles. This has led to an increase in the price of diesel cars and trucks.

What did the Federal minister say?
Nitin Gadkari, speaking at the 63rd conference of the Association of indian Automobile Manufacturers  held in Delhi, said: “The Union minister has warned  car manufacturers that it will be difficult to sell vehicles diesel  after  tax increase. Try to stop using diesel as soon as possible, otherwise we will increase taxes. This will make it  difficult for you to sell diesel cars. diesel cars will be taxed  an additional 10% on fuel in case of pollution. "I will present this proposal to the finance minister today," he said. The Union Minister's speech was seen as an impetus to reduce the use of diesel vehicles and introduce more electric vehicles on indian roads.
 Importing is a challenge:
 India imports 89% of its crude oil, which poses a significant challenge. This is why prime minister Narendra Modi has given high priority to alternative fuels and biofuels. Costs are increasing due to  crude oil imports. diesel needs to be stopped somehow. industry should take the lead. Say goodbye to diesel or diesel cars, or face the same consequences as the PS4. Why can't buses and trucks run on ethanol? The minister also raised this issue.

Stocks decline:

 Shares of carmakers Tata Motors, mahindra and ashok Leyland fell between 2.5 and 4 per cent immediately after the minister's speech. Shares in tractor makers Swaraj Engines and Scots Kubota fell 3%. Shares of major oil companies Hindustan Petroleum, Bharat Petroleum and indian oil also fell  3 to 4%. It should be noted that the automobile industry contributes 6% to the country's total GDP.
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10% GST

Sowmiya Sriram

12/09/2023 05:44 PM