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

Finance Minister Nirmala Sitharaman connected Thursday (December 4, 2025) said the projected Health and National Security Cess volition not beryllium levied connected indispensable commodities, and the proceeds volition beryllium shared with States nether circumstantial wellness schemes.

Moving the Health Security se National Security Cess Bill, 2025, for treatment successful the Lok Sabha, Ms. Sitharaman said the levy would beryllium imposed connected the accumulation capableness of cookware masala units, which is simply a demerit good.

"By levying the cess, we expect that it would enactment arsenic a deterrent for cookware masala consumption. Part of the gross from this cess volition beryllium shared with States done wellness consciousness oregon different health-related schemes/activities," Ms. Sitharaman said.

“Pan masala volition proceed to pull the maximum 40% Goods and Services Tax (GST). On apical of that, the Health and National Security Cess volition beryllium levied connected the accumulation capableness of cookware masala manufacturers,” the Minister said.

“This cess volition guarantee a "dedicated and predictable assets stream" for 2 domains of nationalist value — wellness and nationalist security,” she added.

Ms. Sitharaman said that since excise work cannot beryllium levied connected cookware masala, the authorities is bringing successful a abstracted cess measure to guarantee that accumulation of cookware masala is taxed, on with GST, which is levied connected consumption.