MOSCOW (MRC) -- India is not planning to levy any new tax on diesel vehicles, the country's transport minister told news channel CNBC-TV18 on Thursday, two days after he warned automakers to reduce diesel production or face higher taxation, said Hydrocarbonprocessing.
"I am not against diesel and neither are we going to levy any new tax on diesel vehicles," Nitin Gadkari, the federal road transport minister, told the channel.
Gadkari's comments were a marked step back from his speech at an auto industry conference on Tuesday when he warned carmakers to reduce production of diesel vehicles or face higher taxation, causing shares of automakers like automakers Mahindra and Mahindra, Tata Motors and commercial vehicle maker, Ashok Leyland to drop between 2.2% and 2.5%.
In the speech, Gadkari had said he would ask the finance minister for an "additional 10%" goods and services tax on diesel vehicles to tackle problems related to pollution. India currently imposes a 28% tax on diesel vehicles and an additional tax called a cess is levied depending on the engine capacity.
We remind, Russia is shipping its first crude oil cargo to Brazil, as it seeks to diversify its list of buyers, which has been drastically limited by U.S. and EU sanctions. Russia has been heavily relying on India and China as main buyers of its crude after European embargo and price cap policies were imposed in December last year after Russia's action in Ukraine that Moscow calls a special military operation.