The Himachal Pradesh government is currently levying 10 different cesses, through which more than Rs 762.13 crore has been collected so far.
Of these, five were imposed by the previous government, while the present government has introduced an additional five, Deputy Chief Minister Mukesh Agnihotri informed the Assembly on Thursday in reply to a question raised by MLA Bikram Thakur.
Agnihotri clarified that cess collections are spent only for the purposes for which they are levied. To ensure transparency and timely utilisation, the government is preparing a Standard Operating Procedure (SOP) that will allow departments to directly use cess funds. At present, the money is deposited with the Finance Department, which cannot spend it arbitrarily.
He said the cesses are an important means of raising additional resources for development, particularly for education and healthcare.
He assured that no burden has been imposed on the common people and noted that the previous government’s scheme of providing 125 units of free electricity continues.
Raising concerns, MLA Bikram Thakur questioned why the Covid cess and ambulance service cess were still being charged. He also asked why ambulance users are made to pay, despite the existence of the cess.
BJP MLA Randhir Sharma argued that cesses on sand and gravel had led to price hikes, affecting poor households.
He further alleged that funds collected in the name of stray cattle were not being released regularly.
Responding, the Deputy Chief Minister said this was a people’s government and that cesses had not burdened citizens.
He announced that the aid for stray cattle has been increased from Rs 700 to Rs 1,200 per animal and would be released soon.
Sharing details, Agnihotri said that Panchayati Raj cess collections from 1998–99 to 2022–23 amounted to over Rs 153 crore, of which around Rs 65 crore went to urban local bodies and Rs 88 crore to panchayats.
The motor vehicle cess yielded Rs 185 crore between 2017 and 2025, while liquor-based cesses have funded multiple welfare schemes.
The Cow Development Fund cess, imposed on liquor sales, generated over Rs 65 crore since 2020–21, was spent on feeding and upkeep of stray cattle in gaushalas and shelters. Similarly, the ambulance service cess on liquor sales has collected nearly Rs 17 crore since 2022.
The Covid cess, imposed during the pandemic, brought in Rs 145 crore between 2020–21 and 2023–24, of which Rs 10 crore was directly given to the Chief Minister’s Relief Fund.