New Delhi: The Winter Session of Parliament is set for another important day on Friday as Union Finance Minister Nirmala Sitharaman prepares to move the Health Security se National Security Cess Bill, 2025, in the Lok Sabha. The proposed law aims to raise additional revenue for public health and national security by imposing a new cess on machinery and production processes used to manufacture certain goods.
Sitharaman explained that the Bill has become necessary because the current GST compensation cess on pan masala is approaching its expiry. To fill that gap, the government plans to introduce a 40 per cent cess. At present, pan masala attracts 28 per cent GST along with the compensation cess, but the GST system only taxes consumption, leaving some varieties untaxed at the production level.
She noted that products such as cigarettes fall under both excise duty and GST, creating a higher overall tax burden to curb easy access. Pan masala, however, cannot be taxed through excise duty as it is not listed as an excisable good. “The new law will bring in a production-based cess to address this gap,” she said during Thursday’s debate.
Friday’s business will also include a statement by Union Minister Kiren Rijiju outlining next week’s agenda. Several Private Member Bills are expected to be introduced, including one by MP D Ravikumar seeking to add a constitutional right to a safe, healthy and sustainable climate. Another Bill proposes replacing Article 129 of the Constitution.
In the Rajya Sabha, Union Minister Piyush Goyal will move a motion for the election of a member to the Rubber Board, while Minister L Murugan will present the upcoming week’s legislative schedule.
On Thursday, Parliament passed the Central Excise (Amendment) Bill, 2025. Sitharaman assured the House that increased duties on cigarettes would be shared with the states.