Lok Sabha Considers Health & Security Cess Bill 2025

The Lok Sabha has taken up the Health Security se National Security Cess Bill, 2025 for consideration and passing. The bill aims to augment funding for health and national security with the imposition of cess on production of pan masala.

Moving the bill, Finance Minister Nirmala Sitharaman said, the Bill is intended to create resources for health security and national security. She said that the cess will not be placed on any essential commodities but only on demerit goods, which are associated with significant health risks. Mrs Sitharaman added that the bill seeks to ensure that critical national priorities are funded without burdening ordinary citizens.

The Minister highlighted that the demerit goods like Pan masala are associated with significant health risks and therefore the government is going to impose a cess to discourage their use. The Finance Minister said, revenue from the Health Security se National Security Cess Bill will be shared with states for specific health schemes. She said, in addition to 40 per cent GST, Health and National Security Cess will be levied on the production capacity of pan masala units..(updated on 4th December 2025)