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Gadkari calls for reducing GST on flex-fuel vehicles to 12 %
Minister for Road Transport and Highways Nitin Gadkari made a pitch for reducing Goods and Services Tax (GST) on flex-fuel vehicles (FFVs) from the current 28 percent to 12 percent. Speaking at the inauguration ceremony of India Bio-Energy & Tech Expo on Monday, Gadkari stressed on the need to make FFVs and ethanol100, or E100 fuel, economically viable for increasing their adoption. “To make the Ethanol100 fuel and flex engine vehicles a success story, the country requires economic viability,” said the minister.
The minister said that the proposal to reduce the GST on flex-fuel vehicles to 12 percent needs to be placed before the GST Council. “We need support from finance ministers of different states. The Union Finance Minister (Nirmala Sitharaman) has assured me that we will try to convince state finance ministers,” he said.
“Yesterday, I discussed with the Finance Minister of Maharashtra. And I told him, please go to the meeting and put up this proposal of reducing GST up to 12 percent on flex-engine cars, scooters. That is to be a great thing for all of us,” said Gadkari.
Flex fuel vehicles can utilise more than one type of fuel and also a mixture of fuels. In India, such vehicles can run on petrol or the recently-launched, E100 fuel. E100 fuel includes 93-93.5 percent ethanol blended with 5 percent petrol and 1.5 percent co-solvent, which is a binder. Indian Oil has started retailing E100 fuel across 400 outlets in the country since March this year.
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