Himachal Assembly Approves VAT Amendment for Orphan and Widow Welfare Cess
In a session marked by political tension, the Himachal Pradesh legislative assembly on Monday passed the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026. The legislation authorizes the imposition of an "orphan and widow cess" of up to Rs 5 per litre on petrol and high-speed diesel at the point of first sale. The bill was introduced by Chief Minister Sukhvinder Singh Sukhu last week and will take effect following the governor's formal assent.
BJP Opposition and Walkout Over Fuel Cess
The Bharatiya Janata Party (BJP) legislators strongly opposed the measure, culminating in a walkout during the assembly proceedings. Leader of the Opposition Jairam Thakur criticized the timing of the bill and argued that it would impose an additional financial burden on the public by increasing transportation costs. Thakur labeled the move as ill-timed and detrimental to common citizens.
In response, Chief Minister Sukhvinder Singh Sukhu defended the legislation, describing the BJP's stance as "anti-Himachal." He highlighted that the central government currently levies cesses of Rs 37 per litre on petrol and Rs 28 per litre on diesel. Sukhu assured that despite the new state-level cess, efforts would be made to maintain fuel prices lower than those in neighboring states like Punjab and Haryana.
Additional Assembly Developments and Policy Updates
The assembly session also addressed several other governmental initiatives and policies:
Outsourcing Catering in Government Rest Houses: Chief Minister Sukhu announced that the government is considering outsourcing catering services in state-run rest houses to enhance facilities. The Public Works Department (PWD) will be responsible for designing menus and collaborating with local catering units.
Him Bus Card Charges to Continue: Deputy Chief Minister Mukesh Agnihotri confirmed that there are no plans to eliminate charges for issuing Him Bus cards. These cards provide a 50% fare concession to women on Himachal Road Transport Corporation (HRTC) buses. The scheme has benefited approximately 37.77 lakh women monthly, costing HRTC around Rs 82.27 crore to date, with about Rs 4.72 crore collected through card issuance fees. Additionally, 508 conductor positions within HRTC remain vacant.
Employee Transfer Policy Under Review: The chief minister indicated that the government might consider enacting a law regarding employee transfers in the future. Although there is no formal provision for mutual transfers, 1,171 such cases have been processed over the past six months under existing regulations.
Spa Regulation Policy in Development: Industry Minister Harshvardhan Chauhan stated that a policy to regulate spas will be formulated in coordination with the health and Ayush departments. Currently, there are 61 registered spas in Himachal Pradesh, with 29 in Kangra, 17 in Kullu, and 12 in Shimla.
Opposition Criticism of State Budget: Leader of the Opposition Jairam Thakur criticized the 2026–27 state budget, calling it "misleading." He alleged reductions in departmental allocations, declining capital expenditure, increasing revenue deficit, and diminishing job opportunities.
