NEW DELHI: The Himachal Pradesh government has proposed a new cess on petrol and diesel to fund welfare measures for orphans and widows.Chief minister Sukhvinder Singh Sukhu on Friday introduced the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026, in the assembly, seeking to levy an “orphan and widow cess” on petrol and high-speed diesel, news agency PTI reported.The proposed levy, which is a completely new tax, will be imposed on the first sale of fuel within the state, meaning it will be charged when oil marketing companies sell petrol or diesel to dealers, and not at every stage of retail sale.The rate of the cess will be notified by the government, with an upper cap of Rs 5 per litre.According to the Bill, the state currently runs multiple schemes for orphans and widows, but lacks a dedicated, permanent funding mechanism.
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The cess aims to create a steady revenue stream for a welfare fund targeted at these groups.All proceeds from the levy will be credited directly to the orphan and widow welfare fund, which will be used to provide financial assistance and support.Sukhu said the move is aimed at strengthening support for vulnerable sections. Once passed by assembly, the Bill will be sent for final assent before it comes into force across the state.
