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New Delhi: Finance Minister Nirmala Sitharaman on Thursday clarified that the proposed Health and National Security Cess will not be levied on essential commodities, and that the revenue generated from the new levy will be shared with states for specific health-related schemes. Moving the Health and National Security Cess Bill, 2025 for discussion in the Lok Sabha, the Finance Minister said the cess is targeted explicitly at pan masala manufacturing units, which fall under the category of demerit goods.“By levying this cess, we expect it to deter pan masala consumption. A part of the revenue raised will be shared with states for health awareness and other health-related schemes,” Sitharaman said in the House.
Pan Masala to Face Additional Levy Over 40% GST
The Finance Minister clarified that pan masala will continue to attract the maximum 40 per cent Goods and Services Tax (GST). In addition, the Health and National Security Cess will be imposed on the production capacity of pan masala manufacturing units, further tightening the tax net around the sector.
She reiterated that the government’s intent is twofold: discouraging harmful consumption and strengthening public health financing at the grassroots level through the states.
Opposition Raises Environmental Concerns
Meanwhile, earlier in the day, leaders of several Opposition parties staged a protest in the Parliament complex over worsening air pollution in the national capital. Some MPs also wore masks to underscore Delhi’s deteriorating air quality symbolically.
The developments come amid a packed parliamentary agenda that also included discussions on the deportation of Indian nationals from the US, the falling rupee, and the adoption of alternative fuels in transport.
