BJP, Congress at loggerheads as Himachal Pradesh govt imposes 60 paise ‘widow, orphan cess’ on fuel

BJP Congress at Loggerheads as Himachal Raises Fuel Cess

Theindiapostdaily.com – Fuel prices across Himachal Pradesh witnessed a significant increase on Wednesday following the state government’s decision to impose a new “Widow and Orphan Cess” of 60 paise per litre on both petrol and diesel. This development has intensified the political discourse, with the **BJP Congress at loggerheads as Himachal** grapples with rising costs and revenue generation needs. According to reports from ANI, the immediate impact was felt in Dharamshala, where petrol prices surged by approximately 71 paise per litre, and diesel prices climbed by 69 paise per litre.

The legislative move stems from the Himachal Pradesh Legislative Assembly’s recent approval of the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026, during the ongoing Budget Session. This crucial amendment empowers the state administration to levy a Widow and Orphan Cess of up to ₹5 per litre on petrol and high-speed diesel. Currently, the imposed rate of 60 paise per litre stands well below the statutory maximum, indicating room for future adjustments if necessary. The collection mechanism ensures that the cess is gathered at the first point of sale within the state boundaries, securing revenue before fuel enters the broader supply chain for consumer distribution.

Political Fallout and Government Defense

The imposition of the new levy has triggered sharp criticism from the opposition. The Bharatiya Janata Party (BJP) has strongly condemned the Sukhvinder Singh Sukhu-led government’s decision. Union Minister and BJP leader Manoj Tiwari highlighted the irony of the situation, noting that the same political entities responsible for the current financial strain are also those who allegedly hinder parliamentary proceedings and fail to support student movements. The opposition argues that these additional levies disproportionately affect the common man during a period of economic uncertainty.

Conversely, the Congress party has mounted a robust defense of the policy. MP Sukhdeo Bharat emphasized that the state is facing a severe financial crunch due to delayed central assistance. He pointed out that despite the Prime Minister’s visit and subsequent promises regarding flood relief, the expected funds have not yet reached Himachal Pradesh. “The government has limited revenue sources and few alternatives,” Bharat stated. He clarified that the taxes being imposed are strictly for welfare measures rather than for luxury expenditures, aiming to bridge the gap caused by the disaster recovery efforts.

Public Sentiment and Additional Levies

Residents of the hill state have expressed mixed reactions to the price hike. A local taxi owner in Dharamshala shared his concerns with ANI, stating, “If fuel prices go up, the price of everything else rises too. Inflation is already so high these days.” While he noted that taxi operators have not yet increased their fares, he warned that further hikes in fuel costs might force them to reconsider their pricing strategy to survive. Another resident, identified as ANI, echoed these sentiments, saying, “We are not happy with this hike. The government should also think about the poor and the middle class. It is very hard for us.”

Beyond fuel, the state government has also introduced a ‘milk cess’ on electricity bills, adding another layer of financial pressure on households. This multi-pronged approach to revenue generation underscores the urgency of the situation. As the **BJP Congress at loggerheads as Himachal** continues its debate, the focus remains on how these levies will impact the daily lives of citizens and whether the promised central funds will alleviate the burden soon.

Frequently Asked Questions

Q: What is the Widow and Orphan Cess? A: It is a new tax levied by the Himachal Pradesh government on fuel sales, aimed at generating revenue for welfare programs. The current rate is 60 paise per litre, with a maximum limit of ₹5 per litre under the amended bill.

Q: How much have fuel prices increased? A: In Dharamshala, petrol prices have risen by around 71 paise per litre, while diesel prices have increased by 69 paise per litre following the implementation of the new cess.

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