Budget 2020-21 and Petrol Prices

There’s a very popular meme in the market these days. It trolls the government for imposing a new agri infra cess (an extra charge) of ₹2.5 and ₹4 on diesel and petrol respectively in Budget 2020-21. This extra charge not only impacts petrol but other items such as alcoholic beverages, apples, gold and so on.

But before you get disappointed on Old Monk getting costlier, hold on, for the prices of items on which agri cess is introduced will mostly remain the same. This is because the government has cut down the excise duty on these items by the same amount/ equivalent percentage. But then you may ask, what’s the point?

Here’s the thing. Money raised from cess goes to the centre directly, whereas the customs and excise duty are collected in the Consolidated Fund of India, which is later shared with the states in an agreed-upon ratio. So, this move added more money directly to the central government’s pocket while keeping the prices same for consumers. 

Win-win or win-whine? Your call, your alcohol. Thanks.

JFYI: This meme is an edited photo.