The Agri cess introduced in the Union Budget 2021-22 will finally go towards boosting APMC mandis and related farming infrastructure, all of which remain governed by states, a top government functionary said on Tuesday, rejecting criticism that the Cess deprives states of revenue as its receipt entirely falls
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The Budget Introduces New Agricultural Infrastructure and Development Levies
According to the budget, basic tariffs on many items have remained reduced to offset the levy’s impact on consumers.
Finance Minister Nirmala Sitharaman announced the abandonment of certain commodities, including petrol, diesel, gold, and some imported agricultural products, to strengthen rural infrastructure. However, while proposing an Agricultural Infrastructure Development Tax (AIDC), Sitharaman said the upkeep was also taken not to overcharge consumers on most items.
In his budget speech in Sabah, the minister said there is an urgent need to improve agricultural infrastructure so that more can remain produced while efficiently storing and processing agricultural products. Rice field.
Agricultural Infrastructure and Development Tax
“This will improve farmer compensation. Agricultural Infrastructure and Development Tax (AIDC) is proposed for a small number of points to allocate resources for this purpose. “However, in applying this levy, we have been careful not to impose an additional burden.
According to budget records, it is 2.5 rupees per liter for petrol and 1 liter for diesel. An AIDC of 4 rupees has remained imposing.
“Overall, there will be no additional burden on consumers,” the minister said. It has been reduced for them so that the consumer as a whole does not bear an additional burden.
What is the Agricultural Infrastructure and Development Cost (AIDC), and will Prices Rise?
Finance Minister Nirmala Sitharaman’s imposition of the Agriculture Infrastructure and Development Cost (AIDC) in her 2021-22 Union Budget raises the question of whether things are getting more expensive. This article conveys a layman’s understanding of her AIDC.
The key word in the Federal Budget 2021-22 presented by Finance Minister Nirmala Sitharaman is Agricultural Infrastructure and Development Costs (AIDC).
Everyone is talking about the tax levied and whether it will affect their pockets.
Are agricultural commodities, gasoline, diesel, apples, alcohol, etc., going up in price?
First, let’s understand what Cess is.
What is Agricultural Infrastructure?
Agri Infra Cess or Agriculture Infrastructure and Development Cess (AIDC) is a tax levied by the Government of India on the commercial production of agricultural products. The calculated price depends on the production capacity. Funds raised by the Government through this levy will remain used for agricultural infrastructure development across the country.
Simply put, the Government needs funds to develop infrastructure and carry out various projects. The Government collects these funds from commercial production across the country through taxes or levies.
In the case of agricultural taxes, funds obtained from commercial agricultural producers remain used for agricultural development.
The Government wants to raise about Rs 3 lakh by imposing tariffs on industrial alcohol, cotton, apples, lentils, peas, chemicals, etc.
The Government intends to use the funds raised to build post-harvest agricultural infrastructure in Mandis.
Cess is a special-purpose tax levied over and above introductory tax rates. The new AIDC aims to raise funds to finance spending on developing agriculture infrastructure.
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