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India.com
5 days ago
- Automotive
- India.com
Big Relief On Toll Tax: Union Minister Nitin Gadkari Unveils Plan For Toll Tax Reform
Nitin Gadkari's Statement on Toll Tax: Union Road Transport Minister Nitin Gadkari, while attending Zee Bharat's program 'Bharat Ki Udaan', made a significant statement regarding toll tax. He has announced that he will make a big announcement in the next three days. He has also indicated that this announcement is going to be such that everyone will be happy. Good news is coming regarding toll tax When Union Minister Nitin Gadkari, who was involved in Zee Bharat's program 'Bharat Ki Udaan', was asked a question about the reduction in toll tax, he pointed towards a big decision and said - 'I will make such an announcement within three days at the most, no one will ask a question about toll, and everyone will be happy.' In such a situation, it is being speculated that Nitin Gadkari is going to take a big decision regarding toll tax, in which the announcement of abolishing the toll gate completely can be made. Earlier in April 2025, Nitin Gadkari had also indicated that abolish the toll gate. At the same time, people are likely to get relief from the jam on the highway and an arbitrary recovery. Nitin Gadkari also talked about making the automobile industry the number one industry in the world. He said- 'Automobile is the most important industry of our country. When our government came in 2014, the size of this industry was 14 lakh crores. We were at number seven then. According to a report that came four months ago, the size of our industry has become 22 lakh crores, and we have reached number three by defeating Japan. America is at number one in the world, whose an industry size is 79 lakh crores. China is at number two, whose an industry size is 48 lakh crores. India is at number three, whose an industry size is 22 lakh crores.' The way cars from Mercedes to the most expensive cars, tractors, and two-wheelers are being made in India, and are being exported all over the world. In terms of two-wheeler exports, we are in second place in the world. This is an industry that has provided 4.5 crore jobs to the youth across the country. This is an industry that gives the highest GST to the Government of India. Our first target for this industry is to we should reach the first position in the world in the coming 5 years; this is our effort. Logistics cost will be reduced During the Bharat Ki Udaan program, Nitin Gadkari also talked about reducing logistics costs. He said- 'If our country has to move forward, then logistics costs will have to be reduced. Currently, our logistics cost is 16 percent. Whereas, in Europe and America it is 12 percent, while in China it is 8 percent.
Time of India
12-06-2025
- Business
- Time of India
Gadkari seeks 5% GST on crude ethanol to push flex-fuel cars, warns against petrol parity
As the Centre and states gear up for a major overhaul of India's Goods and Services Tax ( GST ) framework, Union Road Transport Minister Nitin Gadkari has called for a reduction in the GST rate on crude ethanol—from the current 18 per cent to 5 per cent —in a bid to support the production and adoption of flex-fuel vehicles , according to a report by ToI. At present, ethanol that is used under the Ethanol Blended Petrol (EBP) Programme attracts a concessional GST rate of 5 per cent . However, crude ethanol continues to be taxed at the higher rate of 18 per cent . A source told TNN that Gadkari has urged for parity between the two, cautioning that taxing crude ethanol at such a high rate could discourage people from opting for vehicles that run entirely on ethanol. "Why will people go for these vehicles if the price of crude ethanol is equal to or more than that of petrol?" the source quoted Gadkari as saying. Although over 400 fuel outlets in the country currently offer 100 per cent ethanol, consumer interest remains weak. Gadkari believes this trend can be reversed if a more favourable tax policy is introduced for crude ethanol. Gadkari's appeal comes as the Union government is in the process of re-evaluating the GST structure. Finance Minister Nirmala Sitharaman and a team of officials are reviewing various rationalisation proposals ahead of detailed consultations with states. The larger exercise aims to streamline the GST regime, enhance revenue efficiency, and address classification issues that have emerged since the tax was introduced in 2017. Earlier attempts to bring about change through two separate Groups of Ministers (GoMs) did not yield any actionable consensus. A third GoM is now studying the issue of cesses, particularly the compensation cess, which is set to lapse in March next year. India's GST structure currently features four primary tax slabs: 5 per cent , 12 per cent , 18 per cent , and 28 per cent . While the majority of items fall under the 5 per cent bracket, most of the revenue is generated from the 18 per cent slab. Industry bodies have long been pressing for a simplification of this framework, especially a merger of the 12 per cent and 18 per cent slabs into a single rate of 15–16 per cent . However, such a move may lead to revenue losses and face political opposition from states. Gadkari's proposal to lower GST on crude ethanol aligns with the country's wider energy and transport objectives, including reducing reliance on imported oil and encouraging the use of alternative fuels . It is still uncertain whether this suggestion will be included in the final set of GST reforms currently under consideration.
Entrepreneur
12-06-2025
- Business
- Entrepreneur
Gadkari Pushes for 5% GST on Crude Ethanol Amid Broader Tax Overhaul
While a large volume of items fall under the 5 per cent category, most of the government's revenue comes from the 18 per cent slab You're reading Entrepreneur India, an international franchise of Entrepreneur Media. As India prepares for a significant revamp of its Goods and Services Tax (GST) system, Union Road Transport Minister Nitin Gadkari has pitched for a steep reduction in the GST on crude ethanol—from 18 per cent to 5 per cent—to support the shift toward flex-fuel vehicles, as per The Times of India report. Currently, ethanol used under the Ethanol Blended Petrol (EBP) Programme enjoys a concessional GST rate of 5 per cent. In contrast, crude ethanol—used in pure ethanol vehicles—is taxed at 18 per cent, a disparity Gadkari warns could derail the broader adoption of cleaner, ethanol-based mobility solutions. "Why will people go for these vehicles if the price of crude ethanol is equal to or more than that of petrol?" Gadkari reportedly said, according to a source cited by TOI. Though over 400 filling stations across the country now supply 100 per cent ethanol, uptake remains limited. Gadkari believes lowering the tax burden on crude ethanol could make flex-fuel vehicles more attractive to consumers, reinforcing India's push for alternative energy in transport and reducing dependence on imported crude. His call comes at a critical juncture, as Finance Minister Nirmala Sitharaman leads the Centre's renewed effort to rationalise the GST framework. The exercise, which includes consultations with state governments, seeks to streamline tax rates, correct classification anomalies, and improve revenue efficiency. This effort follows two earlier attempts by separate Groups of Ministers (GoMs) to address similar concerns—both of which ended without consensus. A third GoM is currently examining the future of cesses, particularly the compensation cess that is scheduled to lapse by March next year. The broader reform could have implications for both industry pricing and state finances. India's GST system, introduced in 2017, includes four main tax slabs—5 per cent, 12 per cent, 18 per cent, and 28 per cent. While a large volume of items fall under the 5 per cent category, most of the government's revenue comes from the 18 per cent slab. Industry bodies have advocated for merging the 12 per cent and 18 per cent brackets into a single 15–16 per cent rate to simplify compliance. However, such changes could result in significant revenue loss and face resistance from state governments concerned about shrinking fiscal space.
Time of India
12-06-2025
- Automotive
- Time of India
Gadkari seeks 5% GST on crude ethanol to push flex-fuel cars, warns against petrol parity
As the Centre and states gear up for a major overhaul of India's Goods and Services Tax (GST) framework, Union Road Transport Minister Nitin Gadkari has called for a reduction in the GST rate on crude ethanol—from the current 18% to 5%—in a bid to support the production and adoption of flex-fuel vehicles , according to a report by ToI. At present, ethanol that is used under the Ethanol Blended Petrol (EBP) Programme attracts a concessional GST rate of 5%. However, crude ethanol continues to be taxed at the higher rate of 18%. A source told TNN that Gadkari has urged for parity between the two, cautioning that taxing crude ethanol at such a high rate could discourage people from opting for vehicles that run entirely on ethanol. "Why will people go for these vehicles if the price of crude ethanol is equal to or more than that of petrol?" the source quoted Gadkari as saying. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Top 25 Most Beautiful Women In The World Articles Vally Undo Although over 400 fuel outlets in the country currently offer 100% ethanol, consumer interest remains weak. Gadkari believes this trend can be reversed if a more favourable tax policy is introduced for crude ethanol. Gadkari's appeal comes as the Union government is in the process of re-evaluating the GST structure. Finance Minister Nirmala Sitharaman and a team of officials are reviewing various rationalisation proposals ahead of detailed consultations with states. The larger exercise aims to streamline the GST regime, enhance revenue efficiency, and address classification issues that have emerged since the tax was introduced in 2017. Live Events Earlier attempts to bring about change through two separate Groups of Ministers (GoMs) did not yield any actionable consensus. A third GoM is now studying the issue of cesses, particularly the compensation cess, which is set to lapse in March next year. India's GST structure currently features four primary tax slabs: 5%, 12%, 18%, and 28%. While the majority of items fall under the 5% bracket, most of the revenue is generated from the 18% slab. Industry bodies have long been pressing for a simplification of this framework, especially a merger of the 12% and 18% slabs into a single rate of 15–16%. However, such a move may lead to revenue losses and face political opposition from states. Gadkari's proposal to lower GST on crude ethanol aligns with the country's wider energy and transport objectives, including reducing reliance on imported oil and encouraging the use of alternative fuels . It is still uncertain whether this suggestion will be included in the final set of GST reforms currently under consideration.
Time of India
12-06-2025
- Automotive
- Time of India
Gadkari seeks GST cut on crude ethanol to boost flex-fuel vehicle adoption
New Delhi: As the Centre and states deliberate on overhauling India's Goods and Services Tax (GST) framework, Union Road Transport Minister Nitin Gadkari has urged a reduction in GST on crude ethanol —from the current 18per cent to 5 per cent—to encourage the production and uptake of flex-fuel vehicles , reports TNN. Currently, ethanol used under the Ethanol Blended Petrol (EBP) Programme attracts a concessional GST rate of 5per cent, but crude ethanol continues to be taxed at 18per cent. A source told TNN, Gadkari has pushed for rate parity between the two, warning that higher taxation on crude ethanol could dampen demand for 100per cent ethanol-powered vehicles. 'Why will people go for these vehicles if the price of crude ethanol is equal to or more than that of petrol?' the source quoted Gadkari as saying. Despite over 400 fuel outlets offering 100per cent ethanol, consumer uptake remains low—something the minister believes can be reversed with a more favourable tax structure. Why is it important Gadkari's intervention comes at a time when the government is undertaking a comprehensive review of the GST structure. Finance Minister Nirmala Sitharaman, along with a team of officials, is examining rationalisation proposals ahead of formal discussions with states. The broader effort aims to simplify the GST regime, improve revenue efficiency, and address classification challenges that have emerged since its rollout in 2017. While earlier attempts by two Groups of Ministers (GoMs) failed to yield actionable consensus, a third GoM is now evaluating the issue of cesses—especially the compensation cess, which is slated to expire in March next year. The current GST system comprises four major slabs—5per cent, 12per cent, 18per cent, and 28per cent. While most items are taxed at 5per cent, the bulk of tax collections arise from the 18per cent category. Industry groups have long advocated rationalisation, especially consolidation of the 12per cent and 18per cent slabs into a single rate of 15-16per cent, although such a move could trigger both revenue losses and political resistance, particularly from states. Gadkari's suggestion to lower the GST on crude ethanol dovetails with India's broader energy and mobility goals, including reducing oil imports and promoting alternative fuels. It remains to be seen whether this proposal will be factored into the final GST rejig currently under review.
