The Lok Sabha on Friday began discussions on the Health Security Se National Security Cess Bill, 2025, which proposes a cess on the production of pan masala to boost funding for health and national security initiatives.
Introducing the bill, Finance Minister Nirmala Sitharaman said the proposed cess targets only demerit goods linked to serious health risks, ensuring that essential commodities remain unaffected. She stressed that the measure aims to generate resources for critical national priorities without putting additional financial pressure on ordinary citizens.
Sitharaman added that the cess revenue will be shared with states to support specific health schemes. The levy, in addition to the existing 40% GST, will be imposed based on the production capacity of pan masala units.
