Nitin Gadkari moots extra 10% GST on diesel vehicles, then clears air

Additional tax on diesel vehicles overtook all other industry issues at the annual general meeting of the Society of Indian Automobile Manufacturers (Siam) here on Tuesday. Road Transport and Highways Minister Nitin Gadkari set the tone of the event by stating that the automobile industry must reduce production of high carbon-emitting diesel vehicles. All hell broke loose with the next part of the minister’s sentence–the government may consider imposing an additional 10 per cent goods and services tax (GST) on such vehicles if their production doesn’t come down. As major auto stocks tumbled reacting to the tax warning, Gadkari clarified that there is no such proposal currently under the government’s consideration.