Himachal Pradesh government imposes widow and orphan cess on fuel
The Himachal Pradesh government has introduced a new cess of 60 paise per litre on petrol and high-speed diesel to fund welfare initiatives for widows and orphans. The tax, implemented under the Himachal Pradesh Value Added Tax Act, 2005, took effect on August 11, 2026. Following the notification, fuel prices in the state have increased, with petrol prices in Shimla rising to 103.05 rupees per litre. The move has drawn criticism from the opposition BJP, which has questioned the appropriateness of the revenue collection method.
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What Happened
The government of Himachal Pradesh, led by Chief Minister Sukhvinder Singh Sukhu, implemented a new cess on petrol and high-speed diesel effective from midnight on August 11, 2026. The tax, set at 60 paise per litre, was introduced under Section 6-A of the Himachal Pradesh Value Added Tax Act, 2005. The levy applies to the first point of sale for these fuels within the state, resulting in a total price increase of 71 paise for petrol and 69 paise for diesel in some areas.
The administration stated that the revenue generated from this cess is intended to support welfare funds for widows and orphans. The decision has sparked a political disagreement, with the opposition Bharatiya Janata Party criticizing the government for using the names of vulnerable groups to justify the tax increase. The amendment allows for the imposition of such taxes up to a limit of 5 rupees per litre.
Key Facts
- The new cess is 60 paise per litre on petrol and high-speed diesel.Source not recorded
- The tax was implemented under the Himachal Pradesh Value Added Tax Act, 2005.Source not recorded
- The policy took effect on August 11, 2026.Source not recorded
- The revenue is intended for the welfare of widows and orphans.Source not recorded
- The opposition BJP has criticized the government's approach to generating this revenue.Source not recorded
The Timeline4
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12 Aug
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