'Stop asking for tax cuts, govt needs funds': Nitin Gadkari to India Inc

New Delhi, Mar 10, 2025

Nitin Gadkari stressed that while the government aims to lower taxes, it cannot function effectively without revenue

Union Minister for Road Transport and Highways, Nitin Gadkari, on Monday urged industries to stop persistently demanding tax cuts, emphasising that the government requires funds to implement welfare schemes for the underprivileged.

Speaking at an event, the Road Transport and Highways Minister said India’s logistics cost—currently at 14-16 per cent—will be slashed to 9 per cent within two years, making the country more competitive in global markets.

Gadkari further cautioned businesses against repeatedly seeking reductions in Goods and Services Tax (GST) and other levies. “Do not ask for reducing GST and taxes. It is a continuous process. If we reduce the tax, you will ask for more, because this is human psychology,” he said.

He stressed that while the government aims to lower taxes, it cannot function effectively without revenue. “We want to reduce taxation, but without it, the government cannot run a welfare state,” he added.

However, the minister said that logistics costs in India—currently much higher than in other leading economies—will soon drop significantly. “I assure you that within two years, our logistics cost will be 9 per cent. This will make us more competitive in international markets,” he said. For comparison, logistics costs stand at 8 per cent in China and 12 per cent in the US and Europe.

Gadkari also urged businesses to focus on cost reduction without affecting product quality, which will strengthen India’s position in global trade.

He said the government’s push for capital investment, saying it would generate more employment opportunities and drive economic growth. “You are not only wealth creators but job creators. We need to take advantage of this golden era,” he told industry leaders.

[With PTI inputs] 

[The Business Standard]