Gadkari asks state FM's to consider reducing GST on flex-fuel vehicles to 12 pc

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 in the GST Council meeting.

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 finance ministers of different states. The (Union) finance minister assured me that we will try to convince all the finance ministers.

"Yesterday, I asked Maharashtra's FM to attend the GST Council meeting and propose the reduction of GST on flex-fuel engine cars and scooters," 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.