Finance Minister Nirmala Sitharaman has proposed 100 Agri Infra Cess on alcoholic beverages
under the AIDC Scheme or Agriculture Infrastructure and Development Cess Scheme. This agri
infra cess will be applicable on all alcoholic products Brandy, Whisky, Scotch, Burbon, etc.
This 100 per cent agri infra cess will be applicable from 2nd February 2021 though the budget
proposals are supposed to get implemented from 1st April 2021.
"To ensure the imposition of cess does not lead to additional burden in most of these items on the
consumer, the basic customs duty (BCD) rates have been lowered. This cess shall be used to
finance the improvement of agriculture infrastructure and other development expenditure," the
Finance Ministry said in a statement.
However, while applying this cess, we have taken care not to put additional burden on
consumers on most items," the finance minister said.
However, a 100 per cent cess will also be imposed on other fermented beverages for example,
Cider, Perry, Mead, sake, mixture of fermented beverages or fermented beverages and
nonalcoholic beverages.
Apart from liquor and fermented beverages, Finance Minister Nirmala Sitharaman announced
Agri infra cess of 2.5 per cent has also been imposed on gold, silver and dore bars, 35 per cent on
apples, 5 per cent on specified fertilizer, 1.5 per cent on coal, lignite and peat, 30 per cent on
kabuli chana, 10 per cent on peas, 50 per cent on Bengal gram or chickpeas, 20 per cent on lentil
(mosur) and 5 per cent on cotton.
(With inputs from agencies)