Nitin Gadkari Advocates GST Reduction for Flex-Fuel Vehicles

Union Minister Nitin Gadkari has urged state finance ministers to reduce the GST on flex-fuel vehicles to 12%. Addressing the India Bio-Energy & Tech Expo, he highlighted the need to decrease fossil fuel imports and boost biofuel use, which would benefit the agriculture sector and reduce pollution.

Union Minister Nitin Gadkari on Monday called for a reduction in the Goods and Services Tax (GST) on flex-fuel vehicles to 12%. He addressed state finance ministers at the India Bio-Energy & Tech Expo, emphasizing the importance of decreasing India's fossil fuel imports and increasing the use of biofuels.

Gadkari pointed out that flex-fuel vehicles, which run on a mix of petrol and ethanol or methanol, could significantly reduce import costs and environmental impact. He mentioned having solicited support from Chief Ministers and Finance Ministers, including Maharashtra's Ajit Pawar and Uttar Pradesh's Yogi Adityanath.

The minister highlighted that the automobile industry is vital to the Indian economy, generating 4.5 crore jobs and substantial GST revenue. Gadkari believes that enhancing biofuel technology could boost exports, particularly given global concerns over pollution, thereby further strengthening India's economic position.

(With inputs from agencies.)