Sitharaman: No more Kargil ammo shortage; defense cess, even on pan masala.

• Finance Minister Sitharaman defended the 'Health Security to National Security Cess Bill 2025', stating the government will impose cess on 'sin goods' like pan masala to fund defense.
• Sitharaman cited the Kargil war's ammunition shortage, emphasizing the need for robust defense funding to prevent a recurrence and support high-tech warfare.
• The Finance Minister justified taxing pan masala due to its harmful nature, asserting there's no reason to keep such "demerit" items cheap.
• Sitharaman countered opposition claims about cess, providing historical context and statistics on cess collection and distribution, citing Article 270.
• Sitharaman also highlighted government relief, noting the income tax exemption limit increased from ₹7 lakh to ₹7.76 lakh for the middle class.

Why It Matters: Government will tax "sin goods" to fund defense, preventing past shortages like Kargil.