Lok Sabha Passes Bill To Levy Health, National Security Cess On Pan Masala
The Bill proposes to levy a cess on the machinery installed or the processes undertaken for the manufacture or production of pan masala or other proscribed goods.
The Lok Sabha on Friday passed the The Health Security se National Security Cess Bill, 2025, that will levy a special cess on pan masala.
The proposed law will create a clear legal framework for a special excise cess. The Bill proposes to levy a cess on the machinery installed or the processes undertaken for the manufacture or production of pan masala or other proscribed goods, manually or through hybrid processes.
The proceeds of this cess will flow into the Consolidated Fund of India and will support the government in meeting expenditure related to national security and public health. Initially the Bill is applicable to pan masala, however, the government may notify to extend the cess to other goods, if necessary.
As per the bill's factsheet, the cess will apply to any person who owns/operates/controls machines or processes manufacturing specified goods as given, regardless of tax status, as prescribed.
The tax will be bomputed by maximum rated speed (pouches/tins per minute) and weight per pack, or manual process flat rate, as prescribed.
An Enforcement Framework will include search, inspection, seizure, confiscation of goods and machinery, recovery of dues, penalties, and arrest in severe contraventions, has been provided to safeguard revenue.
