Health, National Security Cess not on essential commodities, revenues to be shared with States: FM

Key Points

1. Health and National Security Cess proposed in 2025.
2. Cess will not be levied on essential commodities.
3. Proceeds from the cess will be shared with States under specific health schemes.
4. Levy will be imposed on the production capacity of pan masala units.
5. Pan masala will continue to attract the maximum 40% Goods and Services Tax (GST).
6. The Health and National Security Cess will be levied on top of the GST on pan masala.
7. The cess aims to create a dedicated resource stream for health and national security.
8. The bill was moved for discussion in the Lok Sabha on December 4, 2025.