India, Dec. 5 -- Union finance minister Nirmala Sitharaman on Thursday told the Lok Sabha that the revenue from the proposed capacity-based cess on pan masala will be shared with states to be used in "health-related" activities. While introducing the bill in the House, she explained the reason to bring two separate legislations for demerit goods - the Central Excise (Amendment) Bill, 2025 on tobacco and its products, and the Health Security se National Security Cess Bill, 2025 on pan masala. She said a new cess has been proposed as excise could not be levied on pan masala on the basis of capacity.P15

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