Union finance minister Nirmala Sitharaman, yesterdayannounced Budget 2021-22 amidst high hopes and expectations and the Covid-19induced economic contraction.
Sitharaman announced a new agriculture development cesson petrol, diesel and gold. However, as per initial reports and estimates, itwill not make these items expensive.
According to a report published in India Today withinputs from PTI, the new cess has been levied to boost agricultureinfrastructure in India. "This (new cess) will ensure enhancedremuneration for our farmers. To earmark resources for this purpose, I proposean Agriculture Infrastructure and Development Cess (AIDC) on a small number ofitems," said Finance Minister, Nirmala Sitharaman.
According to the minister, the new cess won't burn a holein the pocket of consumers while people are of the view that new cess levied onsuch items will be burdensome for them. "While applying this cess, we havetaken care not to put additional burden on consumers on most items," theminister said.
Rs 2.5 per litre on Petrol and Rs 4 per litre on Dieselhas been imposed as a Agriculture Infrastructure and Development Cess in thebudget 2021. To cut the burden on people, the government is reducing BasicExcise Duty and Special Additional Excise Duty.
So, Nirmala Sitharaman proposes that there will be noadditional burden on the consumer becuase these excise duty will be shelved. Nowthe unbranded petrol and diesel will attract basic excise duty of Rs 1.4 perlitre and Rs 1.8 per litre, respectively.
The Special Additional Excise Duty (SAED) will be Rs 11per litre on Petrol and Rs 8 per litre on Diesel. According to PTI, "Thecess 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), andcotton (5 per cent)."
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