Following outrage in the automobile industry of India by car makers, against a proposal to impose additional cess on diesel cars, the Government has announced that there will now be no new cess on diesel vehicles. Supreme Court had earlier asked the Center to consider additional green tax on diesel vehicles which got the automobile industry up in arms opposing such a proposal. They cited that diesel was not as polluting as it was made out to be and the Government would unnecessarily be taxing a technology that was actually clean, green and fuel efficient.
Society of Indian Automobile Manufacturers (SIAM) spokesperson, Vishnu Mathur, DG of the Industry Lobby Group stated that as compared to vehicles it was industry, gensets and power producers all running on diesel power that were major polluters. Diesel used in vehicles, on the other hand, though polluting, was also energy saving and more fuel efficient than petrol.
However, now the Government has confirmed that they will not impose any addition tax on diesel vehicles which was recommended earlier to not only control sales but also to make up for the subsidy that is offered to diesel. Currently petrol and diesel cars are currently being taxed at same rates and will continue to be so at least for the time being.