Overview
- The Health Security se National Security Cess Bill, 2025 proposes a monthly levy on owners or controllers of machines or manual processes used to make specified demerit goods, chiefly pan masala.
- Illustrative rates run from ₹1.01 crore per month per machine (up to 500 pouches/min, up to 2.5g) to ₹25.47 crore (1,001–1,500 pouches/min, over 10g), with ₹11 lakh per month for wholly manual factories, and the Centre can temporarily double rates in the public interest.
- Taxpayers must register equipment, self-declare capacity, and file monthly returns by the 7th, while senior officers get audit, inspection, search and seizure powers and evasion above ₹1 crore can draw 1–5 years’ imprisonment; a three-tier appeals mechanism is provided.
- The Finance Minister said the levy targets only demerit goods, not essentials, will sit over a 40% GST on these products as the compensation cess ends, and follows passage of a separate excise amendment to raise duties on tobacco.
- Debate in the Lok Sabha featured opposition calls for a select committee and warnings about ‘inspector raj’, MSME strain and spending transparency; the Bill has been introduced as a money Bill with a commitment to route a share to state health schemes.