The Finance Minister has recently come up with a new provision of taxes. FM announced reconstructing the taxes in the Union Budget 2021.
Sitharaman has introduced an agri infra and development cess compiling upto 100 percent for financing the agricultural expenditure.
This will not only cover the agricultural but as well as other developmental expenditure too.
The Finance Minister stressed on the need of improvement in the agricultural infrastructure to ensure more productivity.
She also stressed on conserving and processing of the agricultural output with efficiency. Also, she added that all the steps will ensure the increased compensation of the farmers.
However, it is important to know that this cess will not increase the cost of products for the consumers.
There will be more reduction in the import duty but along with a rearrangement. Now, what does that mean? It means that the sates will now receive lesser money due to the cut in the duty or excise tax.
Further, the central excise and custom duties are parted between the Centre and the states.
Also, the AIDC has been replaced to alcoholic beverages, gold, silver, crude soyabean and other commodities. The Centre has also reduced the basic excise duty on petrol and diesel as well.
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