You are here: Home » Budget » News
Business Standard

Budget 2021: Agri infra cess of Rs 2.5 on petrol and Rs 4 on diesel

According to the Budget documents, Agriculture Infrastructure and Development Cess of Rs 2.5 per litre has been imposed on petrol and Rs 4 per litre on diesel

Topics
Budget 2021 | agriculture in India | Farming

Shrimi Choudhary  |  New Delhi 

Photo: Reuters
Consequent to imposition of AIDC on petrol and diesel, the basic Excise duty and Special Additional Excise Duty rates have been reduced on them so that overall, the consumer does not bear any additional burden

The Centre on Monday imposed an agriculture infrastructure cess on a range of items, including petrol, diesel, gold, and alcoholic beverages, up to a 100 per cent, in a move that aims to further boost farm infrastructure.

“There is an immediate need to improve agricultural infrastructure so that we produce more, while also conserving and processing agricultural output efficiently. This will ensure enhanced remuneration for our farmers,” said Finance Minister Nirmala Sitharaman, while proposing an Agriculture Infrastructure and Development Cess (AIDC) on a certain items.

According to the Budget documents, AIDC of Rs 2.5 per litre has been imposed on petrol and Rs 4 per litre on diesel. However, this cess, will not put additional burden on consumers, explained the minister. “To ensure the imposition of cess does not lead to additional burden in most of these items on the consumer, the basic Customs duty rates have been lowered. This cess shall be used to finance the improvement of agriculture infrastructure and other development expenditure," the minister said during her Budget speech.

Consequent to imposition of AIDC on petrol and diesel, the basic Excise duty and Special Additional Excise Duty rates have been reduced on them so that overall, the consumer does not bear any additional burden. Consequently, unbranded petrol and diesel will attract basic Excise duty of Rs 1.4 and Rs 1.8 per litre, respectively. These, apart from a 100 per cent cess, will also be imposed on other fermented beverages such as Cider, Perry, Mead, sake, mixture of fermented beverages and non-alcoholic beverages.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, February 02 2021. 02:08 IST
RECOMMENDED FOR YOU