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The Economic Times
The Economic Times

Himachal imposes 60 paise/litre widow, orphan cess on petrol, diesel

Shimla: The Himachal Pradesh government officially imposed a Widow and Orphan Cess of 60 paise per litre on petrol and high-speed diesel, with the levy coming into force 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, authorising the levy at the point of first sale of petrol and high-speed diesel in the state.

Also Read: India raises windfall tax on diesel, jet fuel exports; cuts levy on petrol exports

According to the notification, the Orphan and Widow Cess will be charged at ₹0.60 (60 paise) per litre on both petrol and high-speed diesel. The notification has been issued with the approval of the Council of Ministers.

The move follows the passage of the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026 by the Himachal Pradesh Legislative Assembly during the Budget Session earlier this year.

The amendment had empowered the state government to levy a Widow and Orphan Cess of up to Rs 5 per litre on petrol and high-speed diesel. The Bill was passed by voice vote in the Assembly, providing the legal framework for imposing the additional cess.

The government has now exercised that power by fixing the levy at 60 paise per litre, substantially below the maximum ceiling of Rs 5 permitted under the amended legislation.

Also Read: Centre ups diesel export duty to Rs 55.5/litre, raises excise to high-speed diesel to Rs 24 & infra cess to Rs 36; ATF duty up to Rs 42

The levy will be collected at the first point of sale within Himachal Pradesh, meaning it will be imposed before the fuel moves through subsequent stages of sale in the state.

The notification has been circulated to the Commissioner, State Taxes and Excise, senior departmental officers and other concerned authorities for implementation.

The new cess will marginally increase the effective cost of petrol and diesel in Himachal Pradesh, while the revenue generated is intended to support welfare measures concerning widows and orphaned children.

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