Health security se National security: Why does Centre want to levy cess on tobacco?

Key Points

1. The Health Security se National Security Cess Bill, 2025 was introduced on December 4, 2025.
2. The Bill proposes a cess on machines used in the manufacture of pan masala.
3. The cess is intended to fund India’s ‘health and national security’ initiatives.
4. The Lok Sabha has passed the Central Excise (Amendment) Bill, 2025 and the amended Manipur Goods and Services Tax (GST) Bill, 2025.
5. The cess amount varies from ₹101 lakh to ₹2.5 crores per month per machine, depending on production volume and weight.
6. India accounts for 70% of the world’s smokeless tobacco users.
7. The economic cost of smokeless and smoked tobacco in India was ₹1.77 lakh crore in 2016-17.
8. Violations of the cess provisions can result in up to 5 years imprisonment.