New “Health Security se National Security Cess” Bill: Government Prepares for a New Sin-Goods Levy as Parliament’s Winter Session Begins
The Union Government is set to introduce a new cess regime targeting sin goods, beginning with pan masala and eventually extending to cigarettes and other tobacco-based products. As Parliament’s Winter Session begins, this marks one of the most significant fiscal policy developments replacing the GST Compensation Cess framework. Introduction of the Health Security se National Security Cess Bill Union Finance Minister Nirmala Sitharaman will introduce the Health Security se National Security Cess Bill, 2025 in the Lok Sabha. The objective of the legislation is two-fold: To mobilize funds for national security expenditure , and To strengthen public health financing . The bill empowers the central government to impose a cess on pan masala and any other items it notifies under public interest. Once passed, the cess will come into effect from the date it is notified in the Official Gazette. Scope of Goods Covered Under the New Cess While the bill is expected to begin with p...