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[BUSINESS] · India · 4 sources

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Himachal Pradesh implements 60-paise fuel cess for welfare

The Himachal Pradesh government has implemented a new ‘Orphan and Widow Cess’ on petrol and high-speed diesel, effective from midnight on August 11, 2026. The levy adds 60 paise per litre to fuel costs. According to state officials, the revenue generated from this cess will be dedicated to welfare programs and financial assistance for orphaned children and widows.

The move has drawn sharp criticism from the opposition Bharatiya Janata Party (BJP), which labeled the tax ‘anti-people.’ BJP leaders, including MP Anurag Thakur and Karan Nanda, alleged that the 60-paise hike is merely the beginning of a larger tax increase, noting that legislative amendments previously passed allow the government to increase taxes by up to Rs 5 per litre. The opposition warned that the additional cost would trigger inflation and increase the burden on farmers and commuters.

In defense of the decision, Chief Minister Sukhvinder Singh Sukhu’s administration and Congress MP Sukhdeo Bhagat cited the state’s strained finances following recent natural disasters. They argued that the lack of adequate compensation from the Central government necessitated new revenue streams to fund essential social welfare initiatives.

Entities

Anurag Thakur · Bharatiya Janata Party · Himachal Pradesh · Himachal Pradesh Government · Sukhu Government · Sukhvinder Singh Sukhu