Budget 2021: What is agri cess and how will it impact you?

Updated : February 01, 2021 05:08 PM IST

In the Budget presented today, Union Finance Minister Nirmala Sitharaman proposed the imposition of an Agriculture Infrastructure and Development cess on specified goods.

In the Budget presented today, Union Finance Minister Nirmala Sitharaman proposed the imposition of an Agriculture Infrastructure and Development cess on specified goods. Also, a Rs 2.5 per litre agri infra cess on petrol and Rs 4 on diesel has been imposed for 2021-22.

However, there would be no additional burden on the consumer overall as the finance minister also proposed to reduce Basic Customs Duty on these items.

"Overall there would be no additional burden on the consumer on most of these items," she said.

An Agriculture Infrastructure and Development Cess (Agri cess) has been proposed on specified goods, as below:

(A) On customs side

Items	Proposed cess (Customers)
Gold, Silver and dore bars	2.50%
Alcoholic beverages (falling under chapter 22)	100%
Crude palm oil	17.50%
Crude soyabean and sunflower oil	20%
Apples	35%
Coal, lignite and peat	1.50%
Specified fertilizers (Urea etc)	5%
Peas	40%
Kabuli Chana	30%
Bengal Gram/Chick peas	50%
Lentil (Mosur)	20%
Cotton (not carded or combed)	5%

Rajat Bose, Partner Shardul Amarchand Mangaldas & Co said that the levy of agriculture cess is an interesting development and its impact needs to be seen on the sector.

Stay tuned with all the live action and updates with our Budget 2021 Live blog.

For full coverage on Budget 2021, click here

Published : February 01, 2021 03:08 PM IST

Budget 2021: What is agri cess and how will it impact you?

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