Parliament Winter Session: Govt To Move New Cess Bill in Lok Sabha Today

Union Finance Minister Nirmala Sitharaman is set to move the Health Security and National Security Cess Bill, 2025, in the Lok Sabha on Friday as the Winter Session of Parliament enters another crucial day.

The Bill seeks to raise additional funds for public health and national security by introducing a new cess on machines and processes used to manufacture certain goods.

According to the Finance Minister, the legislation becomes necessary as the existing GST compensation cess on pan masala is nearing its end. The government now plans to replace that component with a 40% cess. Sitharaman explained that while pan masala is currently taxed at 28% under GST along with the compensation cess, the GST framework only taxes consumption, not production, leaving several varieties outside the tax net.

She pointed out that excise duty applies to production, which is why cigarettes fall under both GST and excise duty, resulting in a higher tax burden to limit easy availability. However, pan masala cannot be brought under excise duty because it is not listed as an excisable product. “Through the new law, the government is bringing in a production-based tax in the form of a cess,” she clarified during Thursday’s discussion.

Friday’s proceedings will also see Union Minister Kiren Rijiju outline next week’s government business in Parliament. Several Private Member Bills are listed as well, including one by MP D Ravikumar seeking to introduce a constitutional right to a safe, healthy and sustainable climate through a new Article 21B. Another proposal aims to replace Article 129 of the Constitution.

In the Rajya Sabha, Union Minister Piyush Goyal is expected to move a motion for the election of a member to the Rubber Board, while Minister L Murugan will brief the Upper House on the upcoming week’s agenda.

On Thursday, Parliament cleared the Central Excise (Amendment) Bill, 2025. While responding to the discussion, Sitharaman said the increased duties on cigarettes would be shared with the states.

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