Budget 2021-22: Finance Minister Nirmala Sitharaman has proposed Agri Infra Development Cess on certain goods.
The cess has been introduced keeping in mind the immediate need to improve agriculture infrastructure.
Union Budget 2021: Finance Minister Nirmala Sitharaman has proposed Agri Infra Development Cess on certain goods. The cess has been introduced keeping in mind the immediate need to improve agriculture 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. To earmark resources for this purpose, I propose an Agriculture Infrastructure and Development Cess (AIDC) on a small number of items,” Sitharaman said.
The cess is expected to come in effect from February 2, 2021. According to the Budget for 2021-22, a Rs 2.5 per litre agri infra cess has been imposed on petrol and Rs 4 on diesel. The government further imposed 30 per cent agri infra cess on kabuli chana, 50 per cent on bengal gram/chick peas,10 per cent on peas, 20 per cent on lentil (mosur), 5 per cent on cotton, and 2.5 per cent imposed on gold, silver and dore bars. The cess of 35 per cent has also been imposed on apples, 5 per cent on specified fertilizer, 1.5 per cent on coal, lignite and peat. Apart from this, alcoholic beverages now has 100 per cent agri infra cess. This cess of 17.5 per cent and 20 per cent has also been imposed on crude palm oil and on crude soyabean, respectively.
However, the government has said that the cess has been imposed in a way that it does “not to put additional burden on consumers on most items.” Sitharaman also clarified that consumers will not pay anything more than they have been paying.