Himachal Assembly passes 'orphan and widow' cess of up to ₹5 a litre on petrol and diesel
On 23 March 2026 the Himachal Pradesh Assembly passed the HP Value Added Tax (Amendment) Bill, 2026, enabling an 'orphan and widow cess' of up to ₹5 per litre on petrol and high-speed diesel to fund welfare of orphans and widows, amid a BJP walkout.
Summary
The Himachal Pradesh Legislative Assembly on 23 March 2026 passed the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026, amending the HP VAT Act, 2005, to allow an 'orphan and widow cess' of up to ₹5 per litre on petrol and high-speed diesel, levied at the point of first sale in the state. The cess is meant to give a dedicated, stable source of revenue for welfare schemes for orphans and widows. Chief Minister Sukhvinder Singh Sukhu said ₹5 was only the ceiling and the actual cess could be much lower, and that fuel prices would not exceed those in Punjab and Haryana. The BJP opposed it and walked out.
Key facts
- Bill
- HP Value Added Tax (Amendment) Bill, 2026 – amends HP VAT Act, 2005
- Passed
- 23 March 2026
- Cess
- 'Orphan and widow cess' – up to ₹5 per litre on petrol and high-speed diesel
- Levied
- At point of first sale in the state
- Purpose
- Dedicated revenue for welfare of orphans and widows
- CM
- Sukhvinder Singh Sukhu; BJP walked out
Practice MCQs 2 questions
The 'orphan and widow cess' on petrol and diesel, approved by a state Assembly in March 2026, belongs to which state?
Show answer
Correct answer: B — Himachal Pradesh
The Himachal Pradesh Assembly passed the HP VAT (Amendment) Bill, 2026, on 23 March 2026.
What is the maximum 'orphan and widow cess' per litre on petrol and high-speed diesel permitted by Himachal Pradesh's VAT amendment of March 2026?
Show answer
Correct answer: C — ₹5
The Bill allows a cess of up to ₹5 per litre; CM Sukhu said the actual rate could be much lower.