Finance Minister Nirmala Sitharaman has proposed to set up Agriculture Infrastructure and Development Cess in the Union Budget 2021. He has announced this cess to be charged at Rs 2.5 per liter in petrol and Rs 4 per liter in diesel. However, there will be no change in the price of petrol and diesel. The reason for this is that the second duty has decreased.
He said that among the items on which agricultural cess has been applied, 100 percent in alcohol, 2.5 percent on gold and silver, 17.5 percent on crude palm oil, 20 percent on crude soybean, sunflower oil, 35 percent on apple. And 40 percent on peas. These agri culture cess will be implemented from 2 February.
Sitharaman said that it would not affect consumers. He said that even after implementing the Agriculture Infrastructure and Development Cess (AIDC), the basic excise duty (BED) and special additional excise duty (Special Additional Excise Duty -SAED) have been reduced. So that there is no additional burden on consumers.
According to the ANI, the finance minister has imposed basic excise duty of Rs 1.4 on unbranded petrol. On diesel, it will be Rs 1.8 per liter. SEAD will be Rs 11 on unbranded petrol and Rs 8 per liter on diesel. Similarly, branded petrol-diesel has also been prepared.
Consequent to imposition of Agriculture Infrastructure and Development Cess (AIDC) on petrol and diesel, 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: FM Sitharaman pic.twitter.com/2KDBeT5eCL
– ANI (@ANI) February 1, 2021