Union Budget 2021: FM Sitharaman proposes agri cess on petrol, diesel

While Finance Minister announced the imposition of agriculture cess of ₹2.5 per litre on petrol and ₹4 per litre on diesel, she also proposed basic
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A woman on duty at a Kolkata petrol pump. (PTI)
A woman on duty at a Kolkata petrol pump.

Union Finance Minister Nirmala Sitharaman has announced the imposition of Agriculture Infrastructure and Development Cess (AIDC) of 2.5 per litre on petrol and 4 per litre on diesel.

Also Read : Weak diesel demand signals a slow rebound for industrial India

However, there would be no additional burden on the consumer overall as Sitharaman during Budget presentation also proposed to reduce Basic Customs Duty on these items.

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"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," Finance Minister Sitharaman said in her Budget speech.

"Consequently, unbranded petrol and diesel will attract basic excise duty of 1.4, and 1.8 per litre respectively. The Special Additional Excise Duty (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," she added.

Sitharaman said that an AIDC of 2.5 per litre has been imposed on petrol and 4 per litre on diesel.

However, blended fuel-- M-15 petrol and E-20 petrol -- will be exempted from cesses and surcharges on the lines of other blended fuels (like E-5 and E-10) if these blended fuels are made of duty paid inputs, Sitharaman said.

First Published Date: 01 Feb 2021, 14:59 PM IST
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