Himachal: Orphan and Widow Cess to be imposed on Petrol and Diesel; Amendment passed amidst opposition

March 23, 2026

Petrol and diesel in Himachal Pradesh will now be subject to an ‘Orphan and Widow Cess.’ Amidst protests from the opposition on Monday, the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026, was passed in the Legislative Assembly.

The bill includes provisions for levying a new ‘Orphan and Widow Cess’ on petrol and high-speed diesel. According to the proposed amendment, this cess will be imposed in a manner that does not place an undue burden on consumers. As per the amendment bill, this cess will be collected at the point of the first sale of petrol and diesel within the state. The state government has been empowered to determine the rate of the cess through an official notification.

However, an upper limit of ₹5 per liter has been fixed for this cess. Through an amendment to Section 2 of the bill, a definition for the ‘Orphan and Widow Cess’ has been incorporated.

Additionally, the cess has been provided with a legal framework through the insertion of a new Section 6-A. It has been stated that the cess is being levied to bolster schemes currently being implemented in the state for the welfare of orphans and widows belonging to economically weaker sections. The funds generated through this initiative will be utilized directly for the welfare of needy orphans and widows.

Opposing the bill, the opposition argued that the resulting increase in petrol and diesel prices would impose an economic burden on the public. Consequently, opposition members staged a walkout from the House in protest against the bill. BJP MLA Randhir Sharma termed the move as an “anti-people” decision.

Meanwhile, Chief Minister Sukhvinder Sukhu asserted that the BJP is “anti-widow and anti-orphan.” He argued that levying a cess for their welfare would not result in petrol and diesel becoming more expensive in comparison to prices in neighboring Punjab and Haryana. The revenue generated from this cess will be dedicated to the welfare of widows and orphaned children.