India Transport Minister Wants Higher Tax on Diesel Vehicles (1)

India’s transport ministry is pushing for additional tax on diesel-powered vehicles to force the industry to curb production of the polluting engines.

Transport Minister Nitin Gadkari will propose levying 10% more goods and services tax on diesel engine vehicles to Finance Minister Nirmala Sitharaman on Tuesday evening. The additional GST could be in the form of a pollution tax, Gadkari said at an auto industry conference in New Delhi.

Gadkari later clarified that there was no tax increase proposal “under active consideration.” Automakers pared drop after the minister’s clarification in a post on X, earlier known as Twitter.

“I ...