Sitharaman introduces 2 bills in LS to levy excise duty on tobacco, cess on pan masala

Contributing sentiments towards policy:

57% : "It is proposed to levy the Health Security se National Security Cess to contribute towards the twin purposes of enabling targeted utilisation for public health, as well as national security," the statement of objects and reasons of the bill said.
56% : The Health Security se National Security Cess Bill, 2025, seeks to levy cess on the production of specified goods like pan masala.
54% : Once the compensation cess ends, sale of tobacco and related products will attract a 40 per cent GST plus excise duty, while pan masala will attract 40 per cent GST plus the Health Security se National Security Cess.
51% : Also, it proposes levy of 60-70 per cent on unmanufactured tobacco and 100 per cent on nicotine and inhalation products.
48% : The levy of compensation cess was later extended by four years till March 31, 2026, and the collection is being used to repay the loan that the Centre took to compensate states for the GST revenue loss during the Covid period.
45% : The bill seeks "to give the government the fiscal space to increase the rate of central excise duty on tobacco and tobacco products so as to protect tax incidence," once the GST compensation cess ends, according to the statement of objects and reasons of the bill.
40% : The Central Excise Amendment Bill, 2025, and The Health Security se National Security Cess Bill, 2025 will ensure that the tax incidence on sin goods like tobacco and pan masala remains the same after discontinuation of the compensation cess.
37% : With regard to the Health Security se National Security Cess Bill, 2025, Ray said that since cess proceeds are not shared with states he opposes the bill.

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