Finance Minister Nirmala Sitharaman, in her Budget 2021-2022 speech, said the government will impose an Agriculture Infrastructure and Development Cess (AIDC) on specified goods -- including alcoholic beverages, gold, silver, cotton, peas, apple, petrol, and diesel.
To benefit farmers, we are raising customs duty on cotton from nil to 10 per cent and on raw silk and silk yarn from 10 per cent to 15 per cent. We are also withdrawing end-use based concession on denatured ethyl alcohol. Currently, rates are being uniformly calibrated to 15 per cent on items like maize bran, rice bran oil cake, and animal feed additives," a statement by the government said.
"An Agriculture Infrastructure and Development Cess (AIDC) of Rs 2.5 per litre has been imposed on petrol and Rs 4 per litre on diesel," FM Sitharaman said in her Budget 2021 speech.
"Consequent to imposition of Agriculture Infrastructure and Development Cess (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," she said.
"Consequently, unbranded petrol and diesel will attract basic excise duty 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. Similar changes have also been made for branded petrol and diesel. Refer to part C for Agriculture Infrastructure and Development Cess rates on these items," she said.