New Delhi: The government is examining proposals to increase excise duty on diesel cars, Parliament was informed Friday.
In a written reply to a question in Rajya Sabha on whether the government is contemplating to increase excise duty on diesel cars, Minister of State Finance, S S Palanimanickam said: "Representations have been received by the government for increasing excise duty on diesel cars. These are under examination".
He further said: "The requests have been justified on the ground that diesel cars are more polluting and consume subsidised diesel providing unintended benefit to diesel car users".
The minister, quoting Society of Indian Automobile Manufacturers (SIAM) said the total number of petrol and diesel cars together sold in the domestic market in 2009-10, 2010-11, 2011-12 was 15.28 lakh, 19.73 lakh and 20.16 lakh respectively.