Thu Dec 04 10:46:01 UTC 2025: Here’s a news article based on the provided text:
New Delhi, December 4, 2025 – Finance Minister Nirmala Sitharaman assured the Lok Sabha today that the proposed Health and National Security Cess would not impact the prices of essential commodities. During the winter session, Ms. Sitharaman moved the Health and National Security Cess Bill, 2025, emphasizing that the levy would target the production capacity of pan masala units, considered a “demerit good.”
The Minister stated that the cess aims to discourage pan masala consumption and provide a dedicated, predictable revenue stream for health and national security initiatives. Revenue generated will be shared with states through health awareness programs and related schemes.
“Pan masala will continue to attract the maximum 40% Goods and Services Tax (GST). On top of that, the Health and National Security Cess will be levied on the production capacity of pan masala manufacturers,” Ms. Sitharaman said. She clarified that the cess is necessary because excise duty cannot be levied on pan masala. The bill aims to tax pan masala production in addition to the GST already levied on consumption.
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