Agriculture infra cess of Rs 2.5 on petrol, Rs 4 on diesel imposed

New Delhi: Finance minister Nirmala Sitharaman's Union Budget 2021 proposed an agricultural infrastructure and development cess of Rs 2.5 per litre on petrol and Rs 4 on diesel. However, their prices will remain unchanged because of reduction in other duties.

Agricultural cess was also applied on several 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 per cent on crude soybean, sunflower oil, 35 per cent on apples and 40 per cent on peas. This will be applicable from February 2.

Sitharaman added that such cess would not affect consumers. She said: "Consequent to imposition of Agriculture Infrastructure and Development Cess (AIDC) on petrol and diesel, 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."

However, gold and silver will become cheaper as a result of rationalisation in the customs duty on imports of these precious metals.

Customs duty on compressors for refrigerators and air conditioners has been hiked to 15 per cent from 12.5 per cent, while the same on LED lamps, parts and spares such as printed circuit boards has also been increased from 5 per cent to 10 per cent.

Likewise, customs duty on solar inverters has been hiked to 20 per cent from 5 per cent earlier, and solar lanterns will now attract customs duty of 15 per cent.

Sitharaman also announced increasing basic customs duty on raw silk to 15 per cent from 10 per cent earlier and on cotton to 5 per cent from nil earlier.

Imported automobile parts such as safety and toughened glasses, windscreen wipers, signalling equipment will attract higher customs duty of 15 per cent, up from 10 per cent thereby making the products expensive.

The Finance minister has announced a hike in customs duty on mobile phone parts like PCBA, camera module, connectors, back cover, side keys and mobile phone charger components of 2.5 per cent from

nil.

Inputs or raw materials of Lithium-ion batteries will now attract customs duty of 2.5 per cent from nil earlier and similarly, ink cartridges and ink spray nozzle would also attract 2.5 per cent customs duty

nil previously.

Finished leather products will become expensive as they now attract basic customs duty of 10 per cent as against NIL earlier.

On the other hand, customs duty on imported nylon fibre and yarn has been reduced to 5 per cent from 7.5 per cent.

However, she announced a levy of agriculture infrastructure and development cess of 2.5 per cent.

Basic customs duty on plastic builder wares has increased to 15 per cent from 10 per cent earlier

and cut and polished synthetic stones, including cut and polished cubic zirconia will now attract basic customs duty of 15 per cent as against 7.5 per cent earlier.

Customs duty on other precious metals like platinum and palladium has been reduced from 12.5 per cent to 10 per cent.

The government also waived 5 per cent health cess on the medical

devices imported by the international organisation and diplomatic missions, which is expected to result in bringing down

the cost.