Centre moves Bills for pan masala cess and higher duties on tobacco products

Context
• The Union Government introduced two Bills in Parliament:

  1. Health Security & National Security Cess Bill, 2025
  2. Central Excise (Amendment) Bill, 2025
    • Aim: To raise excise duties on tobacco and impose a cess on pan masala manufacturing.
    • Reason: The GST compensation cess on tobacco—used to reimburse States for GST revenue losses—is being phased out once the Centre repays loans taken during COVID-19.
    • To offset this revenue gap and fund health + national security, the Centre seeks new cesses on:
    • tobacco products
    • and pan masala manufacturing processes.
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Centre moves Bills for pan masala cess and higher duties on tobacco products

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