The Union road transport minister on Tuesday said he will 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.
Mr. Gadkari said he will ask the finance minister later on Tuesday for an “additional 10%” goods and services tax on diesel vehicles to tackle problems related to pollution. India currently imposes a 28% tax and additional so-called “cess” is levied depending on the vehicles’ engine capacity.
