Pan Masala, Tobacco Tax Hiked for National Security & Health Funding

• Lok Sabha passed the Health Security to National Security Cess Bill 2025.
• A new cess will be imposed on pan masala, gutkha, and tobacco manufacturers.
• Funds from this cess are earmarked for national security and public health.
• The cess will make pan masala and tobacco products more expensive, increasing the tax burden on manufacturers.
• Finance Minister Nirmala Sitharaman stated only harmful goods are taxed, and the cess is vital for defense and health funding.

Why It Matters: Tax on harmful products will bolster national security and public health.