Gadkari Urges GST Cut on Flex-Fuel Vehicles to Boost Biofuel Use

Union Minister Nitin Gadkari has called on state finance ministers to reduce GST on flex-fuel vehicles to 12%. Speaking at the India Bio-Energy & Tech Expo, he emphasized the need to curb fossil fuel imports and advocated for increased biofuel use, which he believes will benefit the agriculture sector significantly.

Union Minister Nitin Gadkari urged state finance ministers on Monday to consider reducing the Goods and Services Tax (GST) on flex-fuel vehicles to 12 percent.

Speaking at IFGE's India Bio-Energy & Tech Expo, Gadkari highlighted the necessity of cutting down on fossil fuel imports and promoting the use of biofuel.

"We need support from the finance ministers of different states. I asked Maharashtra's FM to attend the meeting and propose the reduction of GST on flex-fuel engine cars," Gadkari stated.

Flex-fuel-enabled vehicles can run on more than one type of fuel, typically a blend of petrol and ethanol or methanol.

Gadkari noted that he had also appealed to Uttar Pradesh Chief Minister Yogi Adityanath to lower taxes on flex-fuel vehicles.

In a separate discussion with Maharashtra Finance Minister Ajit Pawar, Gadkari requested him to join a GST meeting with Union Finance Minister Nirmala Sitharaman on the matter.

Gadkari also pointed out that India imports fossil fuels worth up to Rs 22 lakh crore annually, posing both an air pollution and economic issue.

"So, by initiating this, we will one day reduce our imports and encourage biofuel," he asserted.

Gadkari confidently added that reducing fossil fuel imports and boosting biofuel usage would most notably benefit the agriculture sector, pointing to the vast potential in the biofuel industry.

(With inputs from agencies.)