AIDC Levy On Aircraft Tyres To Continue At 0.5 Percent After Budget 2026-27

Finance Minister Nirmala Sitharaman, as part of the Union Budget 2026–27, clarified that new pneumatic tyres of rubber used on aircraft will continue to attract Agriculture Infrastructure and Development Cess (AIDC) at 0.5%. The clarification applies to goods falling under tariff item 4011 30 00.

AIDC is a customs duty levied under Section 124 of the Finance Act, 2021. It is charged on notified imported goods.

At present, Sl. No. 13A of Notification No. 11/2021-Customs prescribes AIDC at 0.5% on pneumatic tyres of rubber used on aircraft.

With effect from February 2, 2026, the description under this entry is being amended to remove the reference to Sl. No. 157 of Table I of Notification No. 45/2025-Customs, following the omission of the said basic customs duty exemption entry from the same date.

The Finance Minister clarified that the amendment is purely consequential. It does not change the levy or rate of AIDC.

As a result, the AIDC rate will continue at 0.5% on new pneumatic tyres of rubber used on aircraft, except where a specific exemption under the AIDC notification applies.