An additional 10% levy is currently under ‘active consideration’ in attempts to cut vehicular emissions.
The Indian government urges rapid diversification of industries as it aims for a 30% EV market share by 2030.
He said he will ask the finance minister later on Tuesday for an “additional 10%” goods and services tax on diesel vehicles to tackle problems related to pollution. India currently imposes a 28% tax and additional so-called “cess” is levied depending on the vehicles’ engine capacity. “We have to leave petrol and diesel soon and walk on the new path of being pollution free … There should be a diversification as soon as possible,” he said.
India has in recent years promoted electric vehicle sales with tax incentives, though less than 2% of India’s nearly 4 million in car sales last fiscal year were EVs. The government has said it wants EVs to make up 30% of total car sales by 2030.
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