Parliament clears bill to levy cess on pan masala manufacturing units

The cess will be over and above the GST, and will be levied on the production capacity of machines in pan masala manufacturing factories.

Parliament on Monday approved a bill seeking cess on manufacturing units of pan masala to augment expenditure on national security and public health.

The Rajya Sabha returned the Health Security se National Security Cess Bill, 2025, to the Lok Sabha. The bill was approved by the Lower House on Friday.

The cess will be over and above the GST, and will be levied on the production capacity of machines in pan masala manufacturing factories. Replying to the debate on the bill, Finance Minister Nirmala Sitharaman said the cess is intended to serve the cost of national and health security.