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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 Bill will introduce a new cess that replaces the existing Compensation Cess under the GST framework.

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. I

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