Govt imposes agri cess on petrol and diesel in Budget 2021

  • A new cess 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 consumer does not bear any additional burden.

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.
View Personalised Offers on
Check Offers icon Check Offers

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.

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.

Also check these Cars

Find more Cars
Citroen Basalt (HT Auto photo)
Engine Icon1199 cc FuelType IconPetrol
₹ 7.99 Lakhs
Compare
View Offers
Skoda Superb (HT Auto photo)
Engine Icon1984 cc FuelType IconPetrol
₹ 54 Lakhs
Compare
View Offers
Isuzu V-cross (HT Auto photo)
Engine Icon1898 cc FuelType Icon Diesel
₹ 25.52 Lakhs
Compare
View Offers
Bmw 2 Series Gran Coupe (HT Auto photo)
Engine Icon1998 cc FuelType IconMultiple
₹ 37.90 Lakhs
Compare
View Offers
Kia Sorento (HT Auto photo)
UPCOMING
Engine Icon3298.0 cc FuelType IconPetrol
₹ 25 - 30 Lakhs
Alert Me When Launched
Mahindra Marazzo (HT Auto photo)
Engine Icon1497.0 cc FuelType IconDiesel
₹ 14.39 Lakhs
Compare
View Offers

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).

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 01 Feb 2021, 15:21 PM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
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.