The Indian government has recently granted an exemption from the 15 percent Agriculture Infrastructure and Development Cess (AIDC) on imports of LPG (liquified petroleum gas), including liquified propane and liquified butane. The AIDC was introduced in the Union Budget 2021-22 as a tax imposed on the commercial production of agricultural produce. Its primary goal is to provide financial support for the development of agricultural infrastructure in India, funding projects such as cold storage facilities, warehouses, and market yards. Cess, in general, is a supplementary tax collected for specific purposes, distinct from regular taxes, and must be utilized for the intended purpose.
Facts/Terms for UPSC Prelims
- Agriculture Infrastructure and Development Cess (AIDC): A tax imposed on commercial agricultural production to finance the development of agricultural infrastructure.
- Cess: A form of supplementary tax levied by governments for specific purposes, collected in addition to regular taxes, and dedicated to particular projects or initiatives.
- Consolidated Fund of India (CFI): The central repository for government funds, where taxes are typically deposited, and from which government expenditures are made.
- GST (Goods and Services Tax): A comprehensive indirect tax levied on the supply of goods and services in India, replaced various other indirect taxes.
- Excise Duty: A tax imposed on the production or sale of specific goods, typically applied to items like alcohol, tobacco, and petroleum products.
