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Budget 2021: We expect ₹30,000 cr via agri infra cess, says Finance Secretary
'This cess has been designed such a manner that it won't impact common man,' says Ajay Bhushan Pandey
New Delhi: Finance Secretary Ajay Bhushan Pandey on Monday said the government expects ₹30,000 crore through agri infra cess that was announced by Finance Minister Nirmala Sitharaman as part of Budget 2021.
"This cess has been designed such a manner that it won't impact common man," said Pandey.
Stressing on the need to improve the farm infrastructure to ensure higher remuneration to farmers, the Finance Minister proposed an Agriculture Infrastructure and Development Cess (AIDC) in the range of 2.5 to 100 per cent on certain commodities.
"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," she said.
However, while applying this cess, the government has taken care not to put additional burden on consumers on most items, she noted.
As per the Budget documents, AIDC of ₹2.5 per litre has been imposed on petrol and ₹4 per litre on diesel.
Consequent to imposition of AIDC on petrol and diesel, the Basic Excise Duty (BED) and Special Additional Excise Duty (SAED) 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 ₹1.4, and ₹1.8 per litre, respectively. The SAED on unbranded petrol and diesel shall be ₹11 and ₹8 per litre, respectively. Similar changes have also been made for branded petrol and diesel.
The cess on import of 'gold and silver' will be 2.5 per cent, alcoholic beverages (100 per cent), crude palm oil (17.5 per cent), apples (35 per cent), 'coal, lignite and peat' (1.5 per cent), fertilizers, including urea (5 per cent), and cotton (5 per cent).
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Business NewsBudgetNewsBudget 2021: We expect ₹30,000 cr via agri infra cess, says Finance Secretary
First Published:1 Feb 2021, 05:57 PM IST
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