Himachal Pradesh: BJP opposes 60-paise fuel cess, warns further hikes could burden consumers

Speaking to ANI, BJP Himachal Pradesh media in-charge Karan Nanda said the government had already created a provision to increase the tax burden on petrol and diesel by up to Rs 5 per litre and alleged that the newly imposed 60-paise cess was only the beginning.

"The government's intention was already clear that it wanted to make petrol and diesel expensive in Himachal Pradesh. Through an amendment, it had made a provision to increase the tax on petrol and diesel by up to Rs 5 per litre. Out of this, 60 paise has now been imposed, and another Rs 4.40 could be increased in the future," Nanda said.

The state government's Orphan and Widow Cess of 60 paise per litre on petrol and high-speed diesel came into force from midnight on August 11. The levy was enabled through amendments approved by the Himachal Pradesh Legislative Assembly earlier this year.

Nanda alleged that the present government had already increased the tax burden on fuel in 2023, when diesel and petrol prices were raised by Rs 3 per litre on two occasions, resulting in a cumulative increase of Rs 6 through VAT-related measures.

"Since this government came to power, petrol and diesel have continuously become more expensive in Himachal Pradesh. In 2023, the government increased the rates by Rs 3 on two occasions, taking the cumulative increase to Rs 6. Now another 60 paise has been added," he said.

The BJP leader warned that higher fuel prices would have a cascading impact on household expenses in the hill state, where transportation plays a crucial role in the movement of essential commodities.

"Himachal Pradesh is a hill state. As transportation becomes expensive, the cost of necessities also rises. Ration becomes expensive, vegetables become expensive, and ultimately the economic burden falls directly on the pockets of ordinary people," Nanda said.

He also criticised the state government over taxes imposed on other commodities and services, citing what he described as an additional tax on cement. According to Nanda, the additional VAT on cement was earlier around Rs 11 per bag and was subsequently increased to around Rs 16.

Nanda further rejected the state government's argument that Himachal Pradesh faces financial constraints because of lower tax devolution from the Centre, saying the state government should avoid imposing additional burdens on consumers.

"On the one hand, the government says that the revenue it receives from the Centre is less and that there is discrimination against the state. But the government must also consider the burden being placed on the people of Himachal Pradesh through repeated taxes and cesses," he said.

The BJP leader argued that the timing of the fuel cess was particularly concerning because global crude oil prices and transportation costs were already putting pressure on consumers.

"If the government does not think about the people at a time when global conditions are already putting pressure on crude oil prices, people will continue to suffer," Nanda said.

Suggesting that the government should explore other sources of revenue instead of taxing petrol and diesel, Nanda said the BJP would have no objection if additional cess were imposed in other areas, but argued that fuel should be kept outside the ambit of further taxation.

"You can impose a cess on other things. You can increase it elsewhere. But leave petrol and diesel alone, because higher fuel prices make dozens of other commodities expensive," he said.

Nanda also referred to increases in Himachal Road Transport Corporation (HRTC) fares and various levies on electricity, arguing that the government was already collecting revenue through multiple channels.

The BJP media in-charge said the party had opposed such taxation during the Assembly proceedings and would continue to oppose what it termed "anti-people" decisions.

"We had opposed this kind of taxation in the Assembly as well. Our Leader of Opposition Jai Ram Thakur, state BJP president Dr Rajiv Bindal and all our leaders are against it. The BJP will continue to oppose these anti-people decisions," Nanda said.

The BJP's criticism comes after the state government brought the 60-paise-per-litre Orphan and Widow Cess into effect on petrol and high-speed diesel. The government has maintained that the cess is intended to support welfare measures for widows and orphaned children. (ANI)