{"id":344784,"date":"2025-08-20T16:51:30","date_gmt":"2025-08-20T11:21:30","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=344784"},"modified":"2025-08-20T16:53:07","modified_gmt":"2025-08-20T11:23:07","slug":"agriculture-infrastructure-and-development-cess-aidc","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/agriculture-infrastructure-and-development-cess-aidc\/","title":{"rendered":"Agriculture Infrastructure and Development Cess (AIDC)"},"content":{"rendered":"<p><strong>News:<\/strong> The Ministry of Finance has removed the 11% import duty\u00a0 (5% Basic Customs Duty and 5% Agriculture Infrastructure &amp; Development Cess) on cotton till September 30.<\/p>\n<h2>About Agriculture Infrastructure and Development Cess (AIDC)<\/h2>\n<figure id=\"attachment_344785\" aria-describedby=\"caption-attachment-344785\" style=\"width: 288px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-344785\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-BusinessLine.jpg?resize=288%2C209&#038;ssl=1\" alt=\"\" width=\"288\" height=\"209\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-BusinessLine.jpg?resize=300%2C218&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-BusinessLine.jpg?resize=768%2C559&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-BusinessLine.jpg?w=1010&amp;ssl=1 1010w\" sizes=\"auto, (max-width: 288px) 100vw, 288px\" \/><figcaption id=\"caption-attachment-344785\" class=\"wp-caption-text\">Source &#8211; BusinessLine<\/figcaption><\/figure>\n<ul>\n<li>It is a <strong>tax<\/strong> imposed by the government on the <strong>commercial production of agricultural produce<\/strong>.<\/li>\n<li><strong>Introduction:<\/strong> It was introduced in the <strong>Union Budget (2021-22)<\/strong>, <strong>clause 115(1) of the Finance Bill 2021<\/strong>.<\/li>\n<li>This cess is <strong>imposed on goods<\/strong> <strong>specified in the first schedule to the Customs Tariff Act of 1975<\/strong> when <strong>imported<\/strong> into India.<\/li>\n<li><strong>Aim:<\/strong> The government aims to <strong>utilize<\/strong> the funds collected through AIDC for <strong>infrastructure development in agriculture<\/strong> across the country.<\/li>\n<li><strong>Items covered:<\/strong> The items covered under AIDC are &#8211; gold, silver, alcohol beverages, crude palm oil, crude soyabean and sunflower oil, apples, coal, lignite and peat specified fertilizers, peas, kabuli chana, bengal gram, lentil and <strong>cotton<\/strong>.<\/li>\n<li><strong>Purpose<\/strong>\n<ul>\n<li>The <strong>revenue generated<\/strong> through AIDC will be utilized for infrastructure development in agriculture to <strong>enhance productivity<\/strong> and <strong>protect the sector<\/strong> from undue competition, ultimately increasing its <strong>output competently<\/strong>.<\/li>\n<li>The <strong>essential objectives<\/strong> to be completed include &#8211; creating state-of-the-art storage facilities, developing robust cold chains, improving transportation networks, implementing modern processing units, and enhancing farmers\u2019 overall well-being.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Impact on consumers:<\/strong> It <strong>offsets the reduction in customs or excise duty<\/strong> and thus does not <strong>raise the tax incidence for consumers<\/strong>.<\/li>\n<\/ul>\n<table style=\"width: 100%; border-collapse: collapse; border-style: solid;\">\n<tbody>\n<tr>\n<td style=\"width: 720px;\">\n<h2>Cess vs Tax<\/h2>\n<ul>\n<li><strong>Cess<\/strong> is collected for a <strong>specific purpose<\/strong> and its <strong>proceeds<\/strong> are earmarked for that purpose (e.g., agriculture infrastructure), unlike <strong>regular taxes<\/strong> that go to the <strong>consolidated fund<\/strong>.<\/li>\n<li><strong>Revenue from AIDC<\/strong> is <strong>not shared with state governments<\/strong>; it stays with the <strong>Centre<\/strong> for the targeted sector.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>News: The Ministry of Finance has removed the 11% import duty\u00a0 (5% Basic Customs Duty and 5% Agriculture Infrastructure &amp; Development Cess) on cotton till September 30. About Agriculture Infrastructure and Development Cess (AIDC) It is a tax imposed by the government on the commercial production of agricultural produce. Introduction: It was introduced in the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/agriculture-infrastructure-and-development-cess-aidc\/\">Continue reading <span class=\"screen-reader-text\">Agriculture Infrastructure and Development Cess (AIDC)<\/span><\/a><\/p>\n","protected":false},"author":10393,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-344784","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/344784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10393"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=344784"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/344784\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=344784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=344784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=344784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}