New cess bill of 2025
Parliament has taken a big step amid the increasing debate on issues related to health and national security in India. The ‘National Health Security Cess Bill 2025’ is not only in the direction of strengthening public health, but also opens a new way to raise necessary funds for the defense needs of the country. This bill gives the right to impose special cess on units manufacturing pan masala and similar harmful items.
Parliament has passed a new bill on Monday 8 December. Under which special cess i.e. additional tax will be imposed on companies manufacturing pan masala and tobacco. When this bill, which was first passed by voice vote in the Lok Sabha, reached the Rajya Sabha, the opposition raised many questions, especially why the tax collected from things like pan masala should be spent on national security.
Pan masala and harmful products will become expensive
As soon as this bill is implemented, units manufacturing products like pan masala, cigarettes, tobacco will have to pay additional tax, which may increase the prices of these products. The government says that harmful items should not be cheap because they affect people’s health and on the other hand, the revenue generated from these will help in strengthening the security of the country.
Finance Minister made clear the intention of the government
Finance Minister Nirmala Sitharaman clearly said in Parliament that the power to impose cess comes from Article 270 of the Constitution, which allows Parliament to impose tax for a specific purpose. He said that this step will strengthen two fronts. First, more funds will be spent on public health, second, high-tech defense systems can be purchased. Giving an example, he said that lack of defense equipment during the Kargil war had caused huge losses to India. The government does not want the country to reach the same situation once again.
Also read:
India joins hands with 155 year old Russian company, now they will make liquor together
States will get share in health fund
During the discussion, many states raised questions as to how the cess money will be spent. On this, the Finance Minister assured that states will also be given its share for health related schemes. This means that this fund will not only remain with the Center but will also be used to strengthen the hospitals and health infrastructure of the states.
Why was this new cess necessary?
In the new world, wars are not fought only with guns, but expensive technologies like cyber operations, space technology, precision weapons are required. The government says that permanent funding is necessary for all this, and imposing cess on demerit goods is the most balanced way to do this, as it does not directly burden the general public.