Gadkari asks to reduce GST on flex-fuel vehicles to 12%
ECONOMY & POLICY

Gadkari asks to reduce GST on flex-fuel vehicles to 12%

Union Minister Nitin Gadkari suggested on Monday that state finance ministers should consider reducing the Goods and Services Tax (GST) on flex-fuel vehicles to 12% during the GST Council meeting. While addressing the India Bio-Energy & Tech Expo organized by IFGE, Gadkari emphasized the importance of reducing fossil fuel imports and promoting the use of biofuels.

He mentioned that support is needed from the finance ministers of various states and added that the Union Finance Minister had assured him they would work to persuade all the state finance ministers. He noted that he had requested Maharashtra's Finance Minister to attend the GST Council meeting and propose the reduction of GST on flex-fuel engine cars and scooters.

Flex-fuel-compatible vehicles can operate on more than one type of fuel, typically a blend of petrol and ethanol or methanol. Gadkari also shared that he had asked Uttar Pradesh Chief Minister Yogi Adityanath to consider reducing taxes on flex-fuel vehicles.

In a separate meeting with Maharashtra Finance Minister Ajit Pawar, Gadkari suggested that Pawar attend a GST meeting with Union Finance Minister Nirmala Sitharaman to discuss the matter. Currently, vehicles powered by internal combustion engines, including hybrids, are subject to a 28% GST, while electric vehicles are taxed at 5%.

Gadkari pointed out that India imports fossil fuels worth up to Rs 22 trillion annually, which poses not only an air pollution challenge but also an economic issue. He expressed confidence that reducing fossil fuel imports and promoting biofuel would significantly benefit the agriculture sector. Gadkari also mentioned that the cost of biofuel in India is lower and produces no pollution, which would be advantageous for the general public.

The minister highlighted the importance of the automobile industry to the Indian economy, noting that it currently generates 4.5 crore jobs and contributes the highest GST revenue to both state and central governments. He also stated that two-wheeler manufacturers like Hero and Bajaj export 50% of the bikes they produce in India, and if better technology for biofuels is developed, exports could increase by an additional 10 to 20%, as pollution is a major concern worldwide.

Regarding the road sector, Gadkari noted that India is continuing to expand the length of its National Highways.

Union Minister Nitin Gadkari suggested on Monday that state finance ministers should consider reducing the Goods and Services Tax (GST) on flex-fuel vehicles to 12% during the GST Council meeting. While addressing the India Bio-Energy & Tech Expo organized by IFGE, Gadkari emphasized the importance of reducing fossil fuel imports and promoting the use of biofuels. He mentioned that support is needed from the finance ministers of various states and added that the Union Finance Minister had assured him they would work to persuade all the state finance ministers. He noted that he had requested Maharashtra's Finance Minister to attend the GST Council meeting and propose the reduction of GST on flex-fuel engine cars and scooters. Flex-fuel-compatible vehicles can operate on more than one type of fuel, typically a blend of petrol and ethanol or methanol. Gadkari also shared that he had asked Uttar Pradesh Chief Minister Yogi Adityanath to consider reducing taxes on flex-fuel vehicles. In a separate meeting with Maharashtra Finance Minister Ajit Pawar, Gadkari suggested that Pawar attend a GST meeting with Union Finance Minister Nirmala Sitharaman to discuss the matter. Currently, vehicles powered by internal combustion engines, including hybrids, are subject to a 28% GST, while electric vehicles are taxed at 5%. Gadkari pointed out that India imports fossil fuels worth up to Rs 22 trillion annually, which poses not only an air pollution challenge but also an economic issue. He expressed confidence that reducing fossil fuel imports and promoting biofuel would significantly benefit the agriculture sector. Gadkari also mentioned that the cost of biofuel in India is lower and produces no pollution, which would be advantageous for the general public. The minister highlighted the importance of the automobile industry to the Indian economy, noting that it currently generates 4.5 crore jobs and contributes the highest GST revenue to both state and central governments. He also stated that two-wheeler manufacturers like Hero and Bajaj export 50% of the bikes they produce in India, and if better technology for biofuels is developed, exports could increase by an additional 10 to 20%, as pollution is a major concern worldwide. Regarding the road sector, Gadkari noted that India is continuing to expand the length of its National Highways.

Next Story
Infrastructure Energy

Mizoram To Build Rs 139 Billion Pumped Storage Power Plant

Mizoram Chief Minister Lalduhoma on Friday announced plans to construct a 2,400 MW pumped storage hydroelectric power plant in Hnahthial district, marking a major step towards achieving energy self-sufficiency in the state. Addressing the Mizo Students’ Union general conference in Hnahthial town, the Chief Minister said the plant would be developed across the Darzo Nallah, a tributary of the Tuipui river. Once operational, the project is expected to play a pivotal role in meeting Mizoram’s rising electricity demand and reducing dependence on imported power. Officials from the State Power..

Next Story
Infrastructure Energy

Centre Plans Nationwide Opening Of Power Retail Market

India is preparing to open up its retail electricity market to private companies nationwide, effectively ending the long-standing monopoly of state-run power distributors in most regions, according to a draft bill released by the Union Power Ministry on Friday. The move will enable major private sector players — including Adani Enterprises, Tata Power, Torrent Power, and CESC — to expand their presence across the country’s electricity distribution landscape. A similar reform attempt in 2022 had faced strong opposition from state-run distribution companies (discoms), which currently dom..

Next Story
Infrastructure Energy

CEA Sets 100 GW Nuclear Target For India By 2047

In a landmark step marking its 52nd Foundation Day, the Central Electricity Authority (CEA) unveiled an ambitious roadmap to develop 100 gigawatts (GW) of nuclear power capacity by 2047, aligning with India’s long-term Net-Zero commitment and energy security objectives. The event, held at the Central Water Commission auditorium in New Delhi’s R.K. Puram, was attended by Pankaj Agarwal, Secretary, Ministry of Power, who served as the Chief Guest. The roadmap sets out a detailed plan to expand India’s nuclear capacity from its current level of approximately 8,180 MW as of early 2025, outl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?