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India to consider additional 10% tax on diesel engine vehicles

Reuters · 1y

India's Road Transport Minister, Nitin Gadkari, has proposed an additional 10% tax on diesel vehicles to reduce fuel emissions and pollution. He warned automakers of even higher levies if they don't transition away from diesel. Currently, India imposes a 28% tax on diesel vehicles with additional "cess" based on engine capacity. Gadkari's comments sparked discussion among auto executives, with some describing it as a "bombshell." Pollution is a growing concern in India, and the government has been promoting electric vehicles (EVs) with tax incentives.