India's Lok Sabha Passes Health and National Security Cess Bill on Pan Masala Production

Dec 05, 2025 10:57 pm CST

The Lok Sabha has approved legislation imposing a cess on pan masala manufacturing facilities to fund national security and public health initiatives. Finance Minister Nirmala Sitharaman confirmed the revenue will be shared with states while maintaining the existing 40% GST rate on pan masala products. This new cess targets production capacity rather than consumption and represents 6.1% of gross total revenue in the current fiscal year.