Lok Sabha Passes Health and National Security Cess Bill

Delhi: The Lok Sabha on Day 5 of the Winter Session passed the Health Security se National Security Cess Bill through a voice vote, clearing the way for a new cess aimed at bolstering national security and public health funding.

Replying to the debate on the bill, Union Finance Minister Nirmala Sitharaman stated that the cess will be shared with the states, as public health is a state subject. Sitharaman clarified that Section 7 of the Bill lays out the framework for allocation, while the detailed rules governing the fund flow will be notified separately. Emphasizing Parliament’s authority over the levy, she said the rate of the cess will be finalised only after discussions in the House.

On the other hand, amendments moved by members Vishal Patil, Sougata Roy, Sumathy, and Shashikant Senthil were voted down, while government-proposed amendments were approved by voice vote.

Key Features of the Bill

Moving the Bill on the previous day, the Finance Minister said it aims to create stable, rule-based revenue streams for both health security and national security. She assured the House that the cess will apply only to demerit goods that pose significant health risks, and not to essential commodities.

States will receive a share of the revenue earmarked for specific health programmes. For pan masala units, the cess will be imposed in addition to the 40% GST, calculated on production capacity. The levy will apply to the machinery installed or processes undertaken in the manufacture of goods, whether manual or hybrid.

Initially limited to pan masala, the cess may later be extended to other notified goods. Proceeds will go to the Consolidated Fund of India, supporting national security and public health expenditures.

Also Read: Opposition MLA Predicts “BJP Tsunami” in Assam Assembly Elections 2026