The Health Security se National Security Cess Bill, 2025 was passed in the Lok Sabha on Friday.
The new bill proposes raising money for public health and national security by adding a special tax (called a cess) on the production of certain goods. This tax will first be applied to items like pan masala, and the central government has the power to add the cess to other products later. The income collected from this new tax will be used only to fund spending on health services and protecting the nation.
In response to a debate on the Bill, India’s Finance Minister Nirmala Sitharaman said that the Centre wishes to deter the use of demerit goods.
Providing further clarity, the union minister added that all the income from this cess will be specifically spent on health and defence.
The minister explained the necessity of this move, noting that while public health is managed by the states, defence is the responsibility of the central government. She stressed the urgent need for more resources to modernise India's defence forces so they can handle new and changing threats.
Modern wars are no longer fought conventionally; they rely on advanced technology such as precision weapons, space-based systems, and cyber operations, the minister added, and further referenced Prime Minister Narendra Modi's Mission Sudarshan Chakra — a plan to create a powerful security shield around important national sites.
She also mentioned Operation Sindoor to highlight that modern warfare is now completely driven by technology and sophisticated, precise systems.
The Minister emphasised the need to increase government income to meet the nation's many urgent and competing needs. She pointed out that the government has already reduced its financial capacity (fiscal space) by significantly cutting Income Tax and making changes to the GST (Goods and Services Tax) system to offer financial relief to the public.
Follow us
