The government of Himachal Pradesh has recently announced an increase in the Water Cess, which is imposed on the use of water for various purposes within the state under the Himachal Pradesh Water (Prevention and Control of Pollution) Act, 1974. The tax is aimed at generating revenue to conserve and manage the water resources in the state. The new rates, effective immediately, are expected to generate an additional INR 10 crores (USD 1.22 Million) for the government, with the rate of tax varying depending on the purpose of use, being higher for industrial use compared to domestic use.

Himachal Pradesh’s Water Cess is a tax levied on the use of water for various purposes, including domestic, commercial, and industrial use, within the state of Himachal Pradesh in India. The purpose of the Water Cess is to generate revenue for the government, which can be used for the conservation and management of water resources in the state. The revenue generated from the Water Cess is utilized for implementing various schemes for water conservation and management, including construction and maintenance of water supply and irrigation systems, watershed management, and groundwater recharge.

The government has cited the increase in the Water Cess as necessary to meet the rising demand for water in the state and fund various initiatives for water conservation and management, including the construction and maintenance of water supply and irrigation systems, watershed management, and groundwater recharge. The government aims to ensure the sustainable use of water resources and provide access to clean and safe water for all residents of the state. The increase in the Water Cess is expected to play a significant role in achieving these objectives by conserving and managing the state's water resources.

However, the announcement of the increase in Water Cess has generated mixed reactions from the public. While some have welcomed the move as essential for the conservation of water resources, others have criticized it as an additional burden, especially for those whose livelihoods depend on water usage.