Tax on Cement Raised from ₹11 to ₹16 per Bag, Fuel Hike to Further Impact Transportation Costs; Congress Has Turned ‘Sukh Ki Sarkar’ into ‘Bojh Ki Sarkar’: Rakesh Jamwal
Shimla: BJP State Chief Spokesperson and MLA Rakesh Jamwal launched a sharp attack on the Congress government over its decision to impose a 60-paise-per-litre Orphan and Widow Cess on petrol and high-speed diesel, saying that the Sukhvinder Singh Sukhu government has made taxes, cesses and additional financial burdens its primary response to the State’s economic problems.
Jamwal said that shortly after assuming office, the Congress government increased VAT on diesel by approximately ₹3 per litre in January 2023, from around ₹4.40 to ₹7.40 per litre. Within about six months, in July 2023, the government again increased VAT on diesel by another ₹3 per litre, from ₹7.40 to ₹10.40 per litre.
“Thus, in 2023 alone, the Congress government increased the VAT burden on diesel by approximately ₹6 per litre in two stages. Now, it has gone a step further by imposing a fresh 60-paise-per-litre cess on both petrol and high-speed diesel,” Jamwal said.
He said the latest cess has been imposed under the provisions of the Himachal Pradesh Value Added Tax Act and has further increased the burden on consumers at a time when households, farmers, horticulturists, transporters and businesses are already struggling with rising costs.
Jamwal said the Congress government's policy of increasing taxes was not confined to petroleum products. The government had also increased the Additional Goods Tax on cement from ₹11 to ₹16 per bag, an increase of ₹5 per bag.
“The figures speak for themselves. Around ₹3 per litre was added to diesel VAT in January 2023, another ₹3 per litre in July 2023, the tax on cement was increased by ₹5 per bag, and now another 60 paise per litre has been imposed on petrol and diesel. How much more burden does the Congress government intend to put on the people of Himachal Pradesh?” he asked.
Jamwal said increasing the price of diesel in a hill State like Himachal Pradesh has a much wider impact than simply making it more expensive to run a vehicle. A substantial part of the State's economy depends upon road transportation, and higher fuel costs exert upward pressure on the transportation cost of cement, steel, sand, gravel, food grains, fruits, vegetables and other essential commodities.
He said the latest decision would particularly affect farmers, horticulturists, taxi operators, transporters, small traders, the middle class and families constructing their homes.
“First, the government increased the tax burden on cement itself, and now it is increasing the cost of the fuel used to transport cement, steel and other construction material. Ultimately, it is the common citizen who has to pay for this double burden,” Jamwal said.
The BJP Chief Spokesperson said the welfare of orphans and widows was undoubtedly the responsibility of the State and BJP fully supports measures aimed at helping vulnerable sections of society. However, he said such welfare measures should be adequately financed through proper budgetary provisions and sound financial management.
“Welfare of orphans and widows is a sensitive and important responsibility of the government. But every welfare programme cannot become an excuse to impose a new tax or cess on the people. The government must improve its financial management instead of repeatedly reaching into the pockets of ordinary citizens,” he said.
Jamwal said the Congress had come to power promising relief and a “Sukh Ki Sarkar”, but its economic decisions had increasingly made it a “Bojh Ki Sarkar” — a government of financial burden.
“Whenever this government faces a financial challenge, its solution appears to be the same—increase VAT, impose a cess, raise a tax or increase a fee. The people of Himachal were promised relief, but they are repeatedly receiving fresh financial shocks,” he said.
Jamwal demanded that the State government reconsider the newly imposed 60-paise-per-litre cess on petrol and diesel and instead focus on better fiscal management, expenditure rationalisation and efficient utilisation of available resources.
“Two diesel VAT hikes of ₹3 per litre each, an additional ₹5 per bag tax burden on cement, and now a fresh 60-paise cess on petrol and diesel—these figures themselves expose the Congress government's economic model. It is not a model of relief; it is a model of continuously increasing the burden on the people of Himachal Pradesh,” Jamwal said.