Union finance minister Nirmala Sitharaman, yesterday announced Budget 2021-22 amidst high hopes and expectations and the Covid-19 induced economic contraction.
Sitharaman announced a new agriculture development cess on petrol, diesel and gold. However, as per initial reports and estimates, it will not make these items expensive.
According to a report published in India Today with inputs from PTI, the new cess has been levied to boost agriculture infrastructure in India. "This (new cess) will ensure enhanced remuneration for our farmers. To earmark resources for this purpose, I propose an Agriculture Infrastructure and Development Cess (AIDC) on a small number of items," said Finance Minister, Nirmala Sitharaman.
According to the minister, the new cess won't burn a hole in the pocket of consumers while people are of the view that new cess levied on such items will be burdensome for them. "While applying this cess, we have taken care not to put additional burden on consumers on most items," the minister said.
Rs 2.5 per litre on Petrol and Rs 4 per litre on Diesel has been imposed as a Agriculture Infrastructure and Development Cess in the budget 2021. To cut the burden on people, the government is reducing Basic Excise Duty and Special Additional Excise Duty.
So, Nirmala Sitharaman proposes that there will be no additional burden on the consumer becuase these excise duty will be shelved. Now the unbranded petrol and diesel will attract basic excise duty of Rs 1.4 per litre and Rs 1.8 per litre, respectively.
The Special Additional Excise Duty (SAED) will be Rs 11
per litre on Petrol and Rs 8 per litre on Diesel. According to PTI, "The
cess 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), and
cotton (5 per cent)."
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