New Delhi, Feb 1 (SocialNews.XYZ) To fund the Centre's massive FY22 spending target, the Centre has imposed an Agriculture Infrastructure and Development Cess on excise and customs duties.
Finance Minister Nirmala Sitharaman, in her Budget 2021-22 proposals to the Parliament, set the cess on petrol products, and certain imported items. This will come into immediate effect from February 2.
"There is an immediate need to improve agricultural infrastructure so that we produce more, while also conserving and processing agricultural output efficiently," she said.
"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."
The minister informed the Parliament that AIDC of Rs 2.5 per litre has been imposed on petrol and Rs 4 per litre on diesel.
Other duties and cess, have also been revised, consequent to the imposition of AIDC.
However, the minister maintained that there will not be any additional burden on the consumer.
"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 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."
Besides, the SAED on unbranded petrol and diesel shall be Rs 11 and Rs 8 per litre, respectively.
Similar changes have also been made for branded petrol and diesel.
On the customs duty side, the cess has been imposed on gold, and silver at 2.5 per cent, certain type of alcoholic beverages at 100 per cent, crude palm oil at 17.5 per cent, crude soyabean and sunflower oil at 20 per cent, and apples at 35 per cent.
Further, the cess will be applied on coal, lignite and peat at 1.5 per cent, specified fertilisers at 5 per cent, peas at 40 per cent, 'kabuli chana' at 30 per cent, 'Bengal gram' or chick peas at 50 per cent, lentil (masur) at 20 per cent and cotton at 5 per cent.
Source: IANS
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