GCtR's Bills/ Legislative Updates : December 2025

*GCtR's Bills/ Legislative Updates : December 2025*

Health Security se National Security Cess Bill, 2025 has been introduced (yet to be passed) on 1 December 2025. It contains 39 clauses and 2 Schedules. Clause 5 says "There shall be levied and collected a cess, to be called Health Security se National Security Cess, from every taxable person, on the machines installed or other processes undertaken by him for the manufacture or production of the specified goods referred to in Schedule I, at the amount specified in Schedule II and computed in the manner provided in section 5."

Schedule 1 includes Pan Masala. But Schedule can also include other items also. 

Statement of Objects and Reasons to the Bill says that "The Health Security se National Security Cess Bill proposes to levy cess on the machines installed or processes undertaken by which the specified goods, namely, pan masala is manufactured or produced, whether manually or through hybrid processes. The cess is linked to the production capacity of machines or other processes rather than the quantity actually produced of such specified goods. The Bill provides for taxable persons to self-declare all machines or processes for each factory or premises, and the cess would be calculated in the aggregate for each such location. The Bill also provides that proper officer may verify and recalibrate these declarations through prescribed mechanisms. Compliance is proposed to be ensured through technological and inspection-based monitoring.