Shares of oil marketing and automobile companies dropped on Tuesday as union Road Transport and Highways Minister Nitin Gadkari spoke on the need to levy an additional 10 per cent goods and service tax on diesel-run vehicles to cut emissions.
As the markets immediately reacted to Gadkari’s remarks, he posted a clarification that there was no proposal under government consideration to impose such a tax.
Speaking at the annual convention of automobile manufacturers body Society of Indian Automobile Manufacturers (SIAM), the Minister said “I am requesting the Finance Minister to impose an additional 10 per cent GST on diesel engines/vehicles. This is the only way to phase out diesel vehicles,” he said.
