Gadkari Proposes 'Pollution Tax' on Diesel Vehicles and Generators to Encourage Green Fuels

NEW DELHI: Nitin Gadkari, India's Road Transport Minister, has pushed for the adoption of environmentally friendly fuels while discouraging the use of polluting options such as petrol and diesel. He has raised the possibility of implementing an additional 10% tax, dubbed a 'pollution tax,' on diesel-powered vehicles and generators if their usage remains excessive. Minister Gadkari intends to present this proposal to the finance minister later today.

He expressed his determination to raise diesel taxes to a level where it becomes challenging to sell this highly hazardous fuel. Additionally, he called upon the automotive industry to proactively reduce diesel consumption and transition to alternative fuels, with a particular emphasis on biomass.

Gadkari's comments have generated mixed reactions, especially within the automotive sector, where there has been a notable shift in consumer demand towards larger utility vehicles like SUVs that often rely on diesel power. As of 12:30 pm, stock prices reflected this sentiment, with Maruti Suzuki trading at Rs. 10,462, down by Rs. 72.90 or 0.69%; Tata Motors at Rs. 618, down by Rs. 16.70 or 2.63%; and Eicher Motors down by Rs. 46.80 or 1.37%, at Rs. 3,357.65.

It is important to note that commercial and larger utility vehicles predominantly operate on diesel, and diesel is also used in various industrial machines and generators, contributing to the country's import dependency.

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