Himachal Proposes Cess on Petrol and Diesel to Support Orphans and Widows

The Himachal Pradesh government has unveiled a plan to introduce a special cess on petrol and high-speed diesel, aiming to create a dedicated welfare fund for orphans and widows. Chief Minister Sukhvinder Singh Sukhu presented the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026, in the Legislative Assembly, laying the groundwork for this initiative.

If passed, the amendment will empower the state to levy an “Orphan and Widow Cess” on fuel, capped at ₹5 per litre. Officials explained that while several welfare schemes already exist, a sustainable funding source is essential to ensure long-term support for vulnerable groups.

Revenue generated from the cess would be earmarked exclusively for welfare programs, helping expand and strengthen assistance for those in need. However, the proposal may spark debate, as it could lead to higher fuel prices for consumers in the state.

The Assembly is expected to deliberate further on the bill, weighing its social benefits against its financial impact.