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LATEST NEWS UPDATES | Agriculture infra cess may hit state revenues -Sayantan Bera

Agriculture infra cess may hit state revenues -Sayantan Bera

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published Published on Feb 2, 2021   modified Modified on Feb 4, 2021

-Hindustan Times/ Livemint.com

“There is an immediate need to improve agricultural infrastructure so that we produce more, while also conserving and processing agricultural output efficiently,” Nirmala Sitharaman said in her budget speech.

The government on Monday introduced a new agriculture infrastructure development cess (AIDC) on petrol, diesel and several other imported items. Finance minister Nirmala Sitharaman assured it won’t place any additional burden on consumers.

However, following the introduction of the cess, states are likely to lose some revenue. Currently, the Centre shares 41% of its total tax revenue with states. But surcharges and cesses are not included in this pool.

“There is an immediate need to improve agricultural infrastructure so that we produce more, while also conserving and processing agricultural output efficiently. This will ensure enhanced remuneration for our farmers,” Sitharaman said in her budget speech.

The finance minister added that “while applying this cess, we have taken care not to put additional burden on consumers on most items.”

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Hindustan Times/ Livemint.com, 2 February, 2021, https://www.hindustantimes.com/budget/agriculture-infra-cess-may-hit-state-revenues-101612215569934.html


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