Himachal Imposes 60 Paise/Litre Cess on Petrol and Diesel for Widows, Orphans

The new levy on petrol and high-speed diesel came into effect from midnight on August 11 following approval by the state Cabinet.

SHIMLA, Aug 12: The Himachal Pradesh government has imposed a 60-paise-per-litre Widow and Orphan Cess on petrol and high-speed diesel, with the new levy taking effect from midnight on August 11.

The State Taxes and Excise Department issued a notification on Tuesday under Section 6-A of the Himachal Pradesh Value Added Tax Act, 2005, formally introducing the additional charge at the first point of sale of petrol and high-speed diesel within the state.

Under the notification, the cess has been fixed at ₹0.60 per litre for both fuels. The decision received the approval of the Council of Ministers before being notified by the department.

The levy follows the passage of the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026, during the state Assembly’s Budget Session earlier this year. The legislation authorised the government to impose a Widow and Orphan Cess of up to ₹5 per litre on petrol and high-speed diesel.

Although the amended law allowed a maximum levy of ₹5 per litre, the government has opted for a substantially lower rate of 60 paise per litre.

The additional charge will be collected at the first sale of fuel in Himachal Pradesh. This means the cess will be applied at the initial point of transaction before the fuel passes through subsequent stages of distribution and retail within the state.

The department has circulated the notification among the Commissioner of State Taxes and Excise, senior officials and other authorities concerned to ensure its implementation.

The introduction of the levy is expected to marginally raise the cost of petrol and diesel for consumers in the state. The revenue collected through the measure is intended to strengthen welfare support for widows and orphaned children.

With the notification now in force, fuel dealers and concerned authorities have been directed to implement the revised levy as prescribed by the state government.

Himachal