Proposed Additional Tax on Diesel Vehicles

 

The published article is about the news of the proposed extra tax on Diesel vehicles by Road Transport Minister of India Shree Nitin Gadkari. Gaurav Nikumbh has written this article, which is an excellent Topic for current affairs on the Indian Economy. Well-qualified mentor Kapil Kushwah has approved the article to publish.

Nitin Gadkari, minister of road transportation, recently highlighted the need to move away from gasoline and diesel. He said that he would offer the finance minister a 10% GST rise as a "pollution tax" if the usage of diesel cars and turbines continues. He then emphasised that there isn't a government initiative like that right now.

The original source of the article is here:  Proposed Additional Tax on Diesel Vehicles, so if you want to read the complete article, please go through the original source of the article.

The Resistance to Diesel in India

Governmental Green Objectives:

The Indian government aims to reduce greenhouse gas emissions and generate 40% of its electricity to reach zero net emissions by 2070 from renewable sources.

Fiscal Strain:

Currently, the federal government charges a 28% tax on diesel-powered automobiles and an extra cess dependent on the engine size.

Emissions Mystery

Concerns about the natural world are increased by the high amounts of nitrogen oxides (nox) produced by diesel engines. The 2015 Volkswagen crisis severely damaged diesel's reputation.

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 Factors for fuel effectiveness:

The price difference between diesel and gasoline has decreased following gasoline liberalization in 2014, even though diesel-powered automobiles offer higher mileage and performance.

Costly Advancements:

Automobile manufacturers left the gasoline-powered market as a result of the implementation of BS-VI emission rules beginning on April 1, 2020, and the pricey improvements diesel engines needed to meet with these standards. They claimed that diesel versions were no longer financially feasible after moving from bs-iv to bs-vi.

Status of Diesel Vehicles in India:

Diesel’s Significant Share:

Diesel constitutes approximately 40% of India’s petroleum product consumption, as per estimates from the petroleum planning & analysis cell.

Transportation dominance:

Around 87% of total diesel sales serve the transport sector, with trucks and buses making up about 68% of diesel sales in India.

Three states, namely Uttar Pradesh, Maharashtra, and Haryana, collectively account for nearly 40% of diesel sales in the country.

Impact on diesel cars

Maruti Suzuki, India’s largest car manufacturer, ceased production of diesel vehicles on April 1, 2020, and does not plan to re-enter this market.

Tata Motors, Mahindra, and Honda no longer produce 1.2-litre diesel engines; they now offer diesel options only for 1.5-litre or larger engines.

While some diesel variants are still available from Hyundai, Kia, and Toyota, most automakers have significantly reduced their diesel offerings since 2020.

This has led to a decrease in the contribution of passenger vehicles to overall diesel demand, dropping from 28.5% in 2013 to 16.5%.

 Advantages Of Diesel Vehicles

Greater Efficiency:

Some individual users prefer diesel due to better fuel economy. Diesel has higher energy content per liter, and diesel engines are intrinsically efficient, utilizing higher compression ratios and no spark plugs.

More power:

Diesel engines offer more torque and are less prone to stalling, making them favoured for heavy vehicles and haulage.

Cheaper Fuel:

Historically, lower diesel prices than petrol were a significant attraction for individual car owners, with a substantial price difference of up to Rs 25 per litre at its peak.

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