Mumbai, Dec. 9 -- Parliament has cleared the Health Security and National Security Cess Bill, 2025, with the Rajya Sabha passing the legislation and returning it to the Lok Sabha. The Bill enables the Centre to levy a cess on products such as pan masala and other notified "demerit goods," with the proceeds earmarked for public health and national security expenditure.

Finance Minister Nirmala Sitharaman told the Upper House that the cess provides a viable mechanism to strengthen healthcare systems and bolster defence preparedness. She stressed that essential goods will not be taxed and that revenues will be shared with states, acknowledging health as a state subject. Sitharaman noted that under the older GST framework, sin goods attracte...