New Delhi, Dec. 2 -- Union finance minister Nirmala Sitharaman on Monday moved two bills in the Lok Sabha-one to levy capacity-based "Health Security se National Security Cess" on pan masala and the other to raise central excise on tobacco and tobacco products-to continue levying high duties on sin goods even after the GST compensation cess on them is phased out. While the Health Security se National Security Cess Bill, 2025 proposes to levy cess on the basis of self-declared production capacity of pan masala, the other one, the Central Excise (Amendment) Bill, 2025, is to raise levies on tobacco and its goods like cigarettes, cigars, cheroots, hookah, and chewing tobacco so that taxes on them do not fall after the GST compensation cess gets withdrawn. According to the Central Excise Amendment Bill, it proposes to levy excise duty on tobacco and its products in the range of Rs.2,700-11,000 per 1,000 sticks depending on the length. It also proposes to levy 60-70% tax on unmanufactured tobacco and 100% tax on nicotine and inhalation products. The proposed taxes will be imposed after the cessation of the GST compensation cess, which is expected by 2025-26. The proposed levy will be in addition to the 40% GST on sin goods. Currently, both pan masala and tobacco attract compensation cess along with a 28% GST. Sitharaman introduced the bills amid din in the Lok Sabha as the Opposition protested, demanding a discussion on the Special Intensive Revision (SIR) of electoral rolls. To be sure, proceeds from specific-purpose health and national security cess will not be part of the divisible pool between the Centre and states. Central excise on tobacco and tobacco products will, however, be the part of the divisible pool and shared by the Centre and the states as per the formula devised by the finance commission. Explaining the rationale of introducing the Health Security se National Security Cess Bill, 2025, she said in a statement accompanying the bill that it proposes to levy the cess "to contribute towards twin purposes of enabling targeted utilisation for public health, as well as national security". Hindustan Times reported this on Monday. "With the levy of GST and compensation cess on tobacco and tobacco products, the rates of central excise duties were reduced significantly to allow for the levy of compensation cess without large impact on their tax incidence," the minister said in a statement....