Nitin Gadkari Urges State FMs to Reduce GST on Flex-Fuel Vehicles to 12%

Nitin Gadkari Urges State FMs to Reduce GST: On Monday, Union Minister Nitin Gadkari asked state finance ministers to ask the next GST Council meeting to think about lowering the Goods and Services Tax on flex-fuel cars to 12%.

Gadkari stressed at IFGE's India Bio-Energy & Tech Expo how important it is to cut down on fossil fuel supplies and encourage the use of biofuels.

He talked about how the state finance ministers needed to back this up and said that the union finance minister had agreed to try to get all finance ministers to back this up.

Flex-fuel cars, which can run on different types of fuel, such as gasoline mixed with ethanol or methanol, are seen as an important step toward increasing the use of alternative fuels.

The minister for roads, transport, and highways said that he had also asked Yogi Adityanath, the chief minister of Uttar Pradesh, to think about lowering taxes on cars that can use both gasoline and diesel.

Gadkari said he had a separate meeting with Ajit Pawar in which he recommended that the Maharashtra Finance Minister go to the GST meeting with Nirmala Sitharaman, the Union Finance Minister, and make the case for lowering the GST on cars and scooters with flex-fuel engines.

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At the moment, cars with internal combustion engines, including hybrids, are taxed at 28% GST, while electric vehicles are taxed at 5%. Gadkari also said that India must stop importing up to 22 lakh crore worth of fossil fuels every year, which is bad for both the economy and the environment.

"So, now by starting this, a day will come when we will reduce our imports and will encourage bio-fuel," he added. And the minister said that he is sure that the farm sector will benefit the most from cutting down on fossil fuel imports and promoting biofuel.

"Today, in the biofuel sector, there is a huge potential," he said. Biofuel is less expensive and better for the environment in India. For the most part, that will also help.

A lot of jobs are made in the car business, which he said was important to the Indian economy. He also said that the auto industry is the one that gives the state and central governments the most GST.

Gadkari also said that Hero and Bajaj bikes, which are two-wheeler makers, export half of the bikes they make in India. He said that India could boost its exports by 10–20% if there was good biofuel technology, "because pollution is a big problem all over the world right now."

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