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 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 cess to discourage its use. The Finance Minister said, revenue from Health Security se National Security Cess Bill will be shared with states for specific health schemes. She said, in addition to 40 percent GST, Health and National Security Cess will be levied on production capacity of pan masala units.
Initiating the discussion, Varun Chaudhry of Congress demanded to send the bill to the Select Committee for further scrutiny. Jagdambika Pal of BJP lauded the imposition of levy on demerit goods. He said, the cess will be spent for the welfare of public health. Congress MP Karti Chidambaram termed the bill anti-federal alleging that the money collected as cess has never been utilised for development works in States. CPI (M) MP R. Sachithanantham called for a ban on tobacco products and requested the Finance Minister to provide 50 per cent of cess revenue to the State Government. He also demanded reduction in taxes on essential items. NCP (SCP) MP Supriya Sule lauded the intention of the Bill, but raised the question of collecting taxes in the form of cess. She said revenue from cess collection has increased but there is no mechanism to share the revenue with the States. DMK MP Thamizachi Thangapandiyan said, the Bill deepens the fiscal imbalance between Centre and States, instead of correcting it. However, the discussion remained inconclusive.
