The Agriculture Infrastructure and Development Cess (AIDC) is a tax levied by the Indian government on certain agricultural products to fund agricultural infrastructure and development projects in the country.
The AIDC was introduced in the Union Budget of 2021-22 and applies to a range of products, including petrol, diesel, gold, silver, and alcoholic beverages.
The rate of AIDC varies depending on the product, and it is levied in addition to other taxes and duties. The AIDC on petrol and diesel is Rs. 2.5 per litre and Rs. 4 per litre, respectively.
The AIDC on gold and silver is 2.5% and 0.5%, respectively, while the AIDC on alcoholic beverages ranges from Rs. 100 to Rs. 800 per litre, depending on the type of beverage.
The AIDC is expected to generate revenue for the government to fund agricultural infrastructure and development projects, including the creation of cold storage facilities, warehousing, and other agricultural infrastructure.
While the AIDC aims to bolster agricultural infrastructure and enhance production capabilities, it is not expected to significantly affect the common citizen, including farmers and consumers.
The government has emphasized that careful measures have been taken to minimize the impact of the AIDC on the general population, and specific adjustments have been made to mitigate its effects.
Therefore, the AIDC is intended to benefit the agricultural sector in the long run by contributing to infrastructure development, technological advancements, and research and development in agriculture.
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