The Rajya Sabha has taken up the ‘Health Security se National Security Cess Bill’, 2025 for discussion. The Bill proposes to levy a cess on production of goods such as pan masala and any other goods that may be notified by the central government. Proceeds from the cess will be used for expenditure towards public health and national security. The Bill was moved by Finance Minister Nirmala Sitharaman in the Rajya Sabha.
Moving the bill, the Minister said that the purpose of the bill is to create a “dedicated and predictable resource stream” for two domains of national importance – the health security and national security. She said, the Cess is not being levied on an essential commodity and is specific on particular demerit goods. She said, this cess will act as a deterrent for those who tend to use the demerit goods and it certainly does not burden the common man on their essential daily consumptions. Mrs Sitharaman reiterated that this is a cess and not an excise duty and it does not alter the GST regime.
