Himachal Pradesh to levy orphan and widow cess on petrol and diesel, CM tables bill in Assembly

Shimla: An orphan and widow cess is set to be levied on petrol and diesel in Himachal Pradesh.

Chief Minister Sukhvinder Singh Sukhu on Friday introduced the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026, in the Legislative Assembly under which an orphan and widow Cess will be levied on petrol and high-speed diesel.

This tax is entirely new. The state government decided to impose this cess with the specific objective of providing assistance to orphaned children and widows.

According to the proposal, the cess will be imposed on the first sale of petrol and diesel within the state. The government will determine the specific rate, though it is capped at a maximum of Rs 5 per litre.

First sale implies that the cess would be charged from the dealer when the fuel is first sold by an oil marketing company to a dealer, rather than every time it changes hands.

According to the bill presented in the Assembly, while several schemes for orphans and widows are currently operational, a need for a permanent dedicated fund for them had been felt.

With this objective in mind, the cess is being introduced to ensure a continuous inflow of funds, thereby facilitating better assistance for these sections of society.

All proceeds generated from this cess will be deposited directly into the orphan and widow welfare fund, through which aid will be extended to those in need.

Chief Minister Sukhvinder Singh stated that the government's primary objective is to empower the vulnerable sections of society and this initiative represents a step taken in that very direction.

He added that once the bill is passed, it will be forwarded to the Lok Bhawan for final assent. Upon receiving approval from there, it will formally become law and come into force across the state.