Health Security se National Security Cess Bill, 2025

On 4th December 2025, the Lok Sabha began consideration of the Health Security se National Security Cess Bill, 2025, which proposes a new cess on the production of pan masala to augment funding for health and national security initiatives.

Key Points

Purpose of the Bill: The legislation aims to generate dedicated resources for national health security and national security without burdening ordinary citizens.
Cess on Demerit Goods: Finance Minister Nirmala Sitharaman clarified that the cess will apply only to demerit goods - such as pan masala - which pose high health risks. No essential commodities will be covered.
Revenue Sharing with States: The Minister stated that revenue from the cess will be shared with states for specific health-related schemes.
Structure of the Levy: In addition to the existing 40% GST on pan masala, the Health and National Security Cess will be imposed based on the production capacity of manufacturing units.