Gadkari for GST cut on flex-fuel vehicles
Asks States to slash tax to 12%
Every year, India imports fossil fuels of up to Rs22 lakh cr, and it is not only a problem related to air pollution, but also an economic problem - Nitin Gadkari, Transport Minister
New Delhi: Union Minister Nitin Gadkari on Monday said state finance ministers should consider reducing Goods and Services Tax (GST) on flex-fuel vehicles to 12 per cent. Addressing IFGE’s India Bio-Energy & Tech Expo, Gadkari also said there is a need to reduce imports of fossil fuels and encourage the use of biofuel.
“We need support from the finance ministers of different states. I asked Maharashtra’s FM to attend the meeting and propose the reduction of GST on flex-fuel engine cars,” he said.
Flex-fuel-compatible cars can run on more than one type of fuel and also on a mixture. Typically, a blend of petrol and ethanol or methanol is used. The road transport and highways minister informed that he had requested Uttar Pradesh Chief Minister Yogi Adityanath to consider reducing taxes on flex-fuel vehicles. In a separate meeting with the Maharashtra Finance Minister Ajit Pawar, Gadkari suggested him attend a GST meeting with Union Finance Minister Nirmala Sitharaman on the issue.