Finance Minister Nirmala Sitharaman on Thursday said the proposed Health and National Security Cess will be levied only on demerit goods, like pan masala, and not on essential commodities. She added that revenue generated from levying this cess will be shared with states for spending on health schemes.

“The purpose of the Health Security se National Security Cess Bill, 2025, is to create a dedicated and predictable resource stream for the two domains of national importance — health and national security,” said Sitharaman while moving the Bill in the Lok Sabha. The Bill was introduced on December 1.

Sitharaman said, “This is a cess, and it is placed not on any essential commodity. The purpose of this Bill is to levy a cess on demerit goods, which are associated with significant health ris

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