Health Security Cess
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.
India's New Taxation Framework: Replacing GST Compensation Cess with Excise Duties on Tobacco and Pan Masala
Dec 01, 2025 10:44 pm CST
Finance Minister Nirmala Sitharaman has introduced two new bills in the Lok Sabha aimed at restructuring taxes on tobacco and pan masala products after the scheduled phaseout of GST compensation cess. The Central Excise (Amendment) Bill and Health Security se National Security Cess Bill will maintain taxation levels on these "sin goods" while redirecting revenue toward public health initiatives and national security efforts.