Govt imposes agri cess on petrol and diesel in Budget 2021

In a bid to boost agriculture infrastructure, the government on Monday announced a cess on certain items, including petrol, diesel, gold and some imported agricultural products.

Centre has imposed cess of ₹2.5 per litre on petrol and ₹4 per litre on diesel in Budget 2021. (REUTERS)
Centre has imposed cess of ₹2.5 per litre on petrol and ₹4 per litre on diesel in Budget 2021.

While proposing the Agriculture Infrastructure and Development Cess (AIDC), Finance Minister Nirmala Sitharaman also said that care has been taken not to put additional burden on consumers on most items.

There is an immediate need to improve agricultural infrastructure so that we produce more, while also conserving and processing agricultural output efficiently, the minister said in her Budget Speech in Lok Sabha.

"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.

"However, while applying this cess, we have taken care not to put additional burden on consumers on most items," the minister said.

As per the Budget documents, AIDC of 2.5 per litre has been imposed on petrol and 4 per litre on diesel.

"Overall, there would be no additional burden on the consumer," the minister said.

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).

First Published Date: 01 Feb 2021, 15:21 PM IST
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 99
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
SHAYONAM Dent Removal Kit - Powerful Car Dent Repair Kit - Suction Cup Dent Puller Handle Lifter and Dent Repair Puller for Car Body Dent, Glass, Tiles and Mirror (Plastic)
Rs. 349
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Musk After Smoke (7.5g)
Rs. 99

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.