Union minister Nitin Gadkari
Credit: PTI File Photo
New Delhi: Union Minister Nitin Gadkari on Monday said state finance ministers should consider reducing Goods and Services Tax (GST) on flex-fuel vehicles to 12 per cent.
Addressing IFGE's India Bio-Energy & Tech Expo, Gadkari also said there is a need to reduce imports of fossil fuels and encourage 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," he said.
Flex-fuel-compatible cars can run on more than one type of fuel and also on a mixture. Typically, a blend of petrol and ethanol or methanol is used.
The road transport and highways minister informed that he had requested Uttar Pradesh Chief Minister Yogi Adityanath to consider reducing taxes on flex-fuel vehicles.
In a separate meeting with the Maharashtra Finance Minister Ajit Pawar, Gadkari suggested him attend a GST meeting with Union Finance Minister Nirmala Sitharaman on the issue.
Gadkari also pointed out that every year, India imports fossil fuels of up to Rs 22 lakh crore, and it is not only a problem related to air pollution but also an economic problem.
"So, now by starting this, a day will come when we will reduce our imports and will encourage bio-fuel," he said.
And because of reducing imports of fossil fuels and encouraging biofuel, the minister said he is confident that the most important beneficiary will be the agriculture sector.
"Today, in the biofuel sector, there is a huge potential," he said.