Nitin Gadkari asks state finance minister to reduce GST on flex fuel vehicles to 12%

Nitin Gadkari on Monday said state finance ministers should consider reducing GST. (Photo: PTI)

2 min read Last updated: September 2, 2024 | 2:58 p.m. IST

Union Minister Nitin Gadkari on Monday said state finance ministers should consider reducing the goods and services tax (GST) on flexible fuel vehicles to 12 per cent.

Addressing IFGE’s India Bio-Energy & Tech Expo, Gadkari also said there was a need to reduce imports of fossil fuels and encourage the use of biofuels.

“We need the support of state finance ministers. I have asked the Maharashtra finance minister to attend the meeting and propose reduction in GST on flex-fuel cars,” he said.

Cars compatible with flex-fuel can run on several types of fuels, but also on a mixture of fuels. Typically, a mixture of gasoline and ethanol or methanol is used.

The Road Transport and Highways Minister informed that he has requested 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 he attend a GST meeting with Union Finance Minister Nirmala Sitharaman on the issue.

Gadkari also pointed out that every year India imports fossil fuels to the tune of Rs 22 lakh crore, and it is not just an air pollution problem but also an economic problem.

“So, starting now, a day will come when we will reduce our imports and encourage biofuels,” he said.

And through the reduction of fossil fuel imports and the promotion of biofuels, the minister said he was convinced that the main beneficiary would be the agricultural sector.

“Today, in the biofuel sector, there is enormous potential,” he said.

(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First published: September 2, 2024 | 2:58 p.m. IST