Budget 2021 - Agriculture Infrastructure and Development Cess !!

Finance Minister Nirmala Sitharaman in Budget 2021 announced imposition of Agriculture Infrastructure and Development Cess (AIDC) on a small number of items including alcoholic beverages, gold, silver, cotton, peas, apple, petrol, and diesel including alcoholic beverages, gold, silver, cotton, peas, apple, petrol, and diesel.

Agricultural Infrastructure Cess of 100 per cent has been proposed on alcoholic beverages, while on gold, silvers and dore bar, it's 2.5 per cent. On apples, it's 35 per cent, while on cotton it's 5 per cent.

The agriculture cess will also be imposed on petrol and diesel -- Rs. 4 per litre on diesel and Rs. 2.5 per litre on petrol.

Why it won't affect consumers?

With the imposition of the AIDC on petrol and diesel, the Basic Excise Duty (BED) and Special Additional Excise Duty (SAED) rates have been reduced so that the consumer does not bear any additional burden, she said.

Consequently, unbranded petrol and diesel will attract BED of Rs. 1.4 and Rs. 1.8 per litre, respectively. The SAED on unbranded petrol and diesel shall be Rs. 11 and Rs. 8 per litre, respectively.

A similar readjustment has been made for alcoholic beverages that currently attract 150 per cent basic customs duty. That basic import duty has now been slashed to 50 per cent, even as the Budget has proposed an AIDC of 100 per cent. Net net the consumer does not have to pay anything extra.