10% additional GST in diesel engine vehicles
What Nitin Gadkari wants ?
(1) Diesel vehicles are polluting so these need to be gradually phased out – Not only carbon emissions, but other pollutants such as SPM, RSPM, Nox , Co, HC etc
(2) He feels that when so much alternatives are available – Industry is too slow to adopt to .
(3) The most affected companies are Tata Motors , Ashok Leyland , Eicher & so on since 90% of the CV portfolio is still diesel.
(4) Maruti has already phased out diesel cars
(5) Alternative technology available – EV, CNG , Hydrogen both IC engine and Fuel cell.
Ethanol Blended with Bio- diesel in CV is also a possibility.
(6) All companies including Tata motors & Leyland & Eicher have CNG trucks and buses in their portfolio and are currently producing.
(7) He has said that this is only begining and he is going to impose more tax if the companies don’t respond fast in switch. This bold announcement by Nitin Gadkari has led to drop in Auto shares today…
(8) Though , this has come a.of a sudden , but all CV and car manufacturers Have CNG technology in their portfolio. so while short term sales may suffer , but in medium and long term, they should be able to come out of this.
Union minister Nitin Gadkari proposes 10% GST hike on diesel-powered vehicles – Times of India
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