This story has been updated at 3:20 PM
Srinagar, Feb 1: In a significant development, FM Nirmala Sitharaman proposed the imposition of an Agriculture Infrastructure and Development Cess in the Union Budget presented today,
The cess, which will be effect from February 2, will be charged at the rate of 35% on apples on the customs side.
Other goods on which the cess has been imposed include: gold, silver and dore bars (2.5%); crude palm oil (17.5%); crude soyabean and sunflower oil (20%); coal, lignite and peat (1.5%); specified fertilisers (5%); peas (40%); kabuli chana (30%); Bengal gram/chickpeas (50%); lentil (20%) and cotton – not carded or combed (5%).
On the other hand, basic customs duty rates have been cut apple imports by 15%.
“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 has 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.
Informed sources told Ziraat Times that this will have no impact on Kashmir apple produce, as it does not impose any taxes on internal apple production nor does it end up changing the current customs duty regime on apples.
This is a developing story and Ziraat Times will be bringing more updates on this during the day.