In a move projected as essential for safeguarding both national and public health priorities, the Rajya Sabha on Monday returned The Health Security se National Security Cess Bill, 2025, to the Lok Sabha after a detailed consideration.

The legislation proposes a new cess on pan masala, tobacco and other “demerit goods” to create a dedicated revenue stream for national security and health security.

The Bill comes at a critical moment, with the existing GST compensation cess — levied atop the 28% GST on these products — being phased out. The new cess, capped at 40%, is intended to replace that revenue without disturbing the GST architecture.

“This is a dedicated and predictable resource stream for two domains of national importance,” Finance Minister Nirmala Sitharaman said while moving t

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