Himachal fuel cess: BJP slams govt as assembly passes new tax bill

Himachal Pradesh govt passed a bill to levy a new cess of up to Rs 5/litre on fuel for a widow/orphan fund. Opposition leader Jai Ram Thakur slammed the move, citing inflation, while CM Sukhu defended it as a welfare initiative.

Opposition Slams Proposed Fuel Cess

Himachal Pradesh Assembly Leader of Opposition Jai Ram Thakur on Saturday criticised the Himachal Pradesh government's decision to increase fuel prices by introducing a new cess on petrol and diesel. The BJP leader urged the state government to reconsider the decision in view of rising inflation. Speaking to ANI, Jai Ram Thakur said, "...The Himachal Pradesh government is taking steps towards increasing the prices of petrol and diesel. They have proposed imposing a cess in the name of widows and orphaned children. The Himachal Pradesh government should reconsider. On one hand, the Prime Minister is taking steps to halt the prices of petrol-diesel, and on the other hand, the Himachal Pradesh government is taking steps to further increase those prices."

Assembly Passes Bill Amid Protests

Meanwhile, on Monday, the Himachal Pradesh Legislative Assembly passed the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026, enabling the state government to levy a cess of up to Rs 5 per litre on petrol and high-speed diesel, despite strong opposition protests and a boycott of the proceedings.

The move by the Congress-led government in Himachal Pradesh aims to generate a dedicated revenue stream for welfare schemes targeting widows and orphaned children. The proposed levy, termed as an "orphan and widow cess," will be imposed at rates to be notified by the government, with an upper ceiling of Rs 5 per litre.

CM Defends Decision, Points to Central Levies

Chief Minister Sukhvinder Singh Sukhu defended the decision, stating that the government retains flexibility in fixing the rate. "The maximum limit for this cess is Rs 5; whether we impose 10 paise or Rs 2 is at our discretion," he said, adding that the intent is to support vulnerable sections of society. He asserted that even after the imposition of the cess, fuel prices in the state would remain lower than in neighbouring Punjab and Haryana. The Chief Minister also targeted the opposition, urging them to raise the issue of central levies, noting that the Centre collects around Rs 27 per litre as cess on fuel.

Opposition Warns of Economic Impact

Opposition leaders also objected to the nomenclature of the cess, questioning the appropriateness of linking it to vulnerable groups. They warned that the hike could increase transportation costs, affect agriculture and tourism, and lead to a rise in prices of essential commodities, including the transportation of apples and other produce.

The government, however, maintained that the cess is a "targeted welfare initiative," and the entire proceeds will be credited to a dedicated fund for widows and orphans to support social security schemes. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)