The Finance Minister Nirmala Sitharaman in Budget 2021 declared imposition of Agriculture Infrastructure and Development Cess (AIDC) of Rs 2.5 per litre on petrol and Rs 4 per litre on diesel. However, there would be no additional burden on the customer overall as the finance minister also proposed to reduce Basic Customs Duty on these products.
"I propose an Agriculture Infrastructure and Development Cess (AIDC) on a small number of items. However, while applying this cess, we have taken care not to put additional burden on consumers on most items," Finance Minister said.
With the rise in petrol and diesel prices, the common man is dealing with new financial concerns from past few days.
The prices of petrol and diesel have been continuously rising in India from January. Due to a lot of activity all over the globe in the wake of the COVID-19 pandemic, there has been a jet in the prices of crude oil. The global trends are further impacting the prices of petrol and diesel in the country.
The petrol prices in the Delhi have become a major issue for many as it crossed Rs 86 recently. The petrol prices in the Mumbai reached near Rs 93 per litre while Pune has gone past Rs 92 mark per litre for petrol.
Meanwhile, agricultural cess was also imposed on multiple other goods including a 100 per cent cess on alcohol, 2.5 per cent on gold and silver bars, 17.5 per cent on crude palm oil, 20 and 40 per cent on peas.
