Govt to introduce Bill to levy a cess for national security, public health
Government plans to bring a cess for national security and public health, as Finance Minister Nirmala Sitharaman sets to introduce to a Bill for this purpose on Monday. This is one of two new Bills listed for the introduction on the first day of the Winter Session.
According to list of business for Lok Sabha, Sitharaman will move for leave to introduce the ‘Health Security and National Security Cess Bill, 2025.’ The Bill aims to “augment the resources for meeting expenditure on national security and for public health and to levy a cess for the said purposes on the machines installed or the processes undertaken by which specified goods are manufactured or produced.”
As of now, it is not clear which are the sources on which cess is to be levied. However, sources said that the bill is expected to empower the Centre to choose income or products on which cess for specific purposes to be collected. Post Operation Sindoor, there has been a strong need for additional resources. Also, earlier this year, a Parliamentary Panel in its report mentioned that a Future Warfare Fund has been set up within the Armed Forces. Also, a Future Analysis Group, for studying future technologies and their impact, is also proposed to be set up. Government has repeatedly said that funds will not be constrain for defence requirement
Talking about public health, the government is implementing various scheme including flagship Ayushman Bharat which provides health cover of ₹5 lakh per family per year for secondary and tertiary care hospitalization to approximately 55 crore beneficiaries corresponding to 12.37 crore families constituting economically vulnerable bottom 40 per cent of India’s population. There is a strong demand for more fund for health.
As on date, Income Tax attracts ‘Health and Education Cess’ at the rate of 4 per cent. At the same time, petrol and diesel attracts two different kind of cess (Agriculture Infrastructure & Development Cess and Road & Infrastructure Cess). Tobacco too attracts cess. All these levies collected by Centre is not required to shared with States and always invites strong criticism from States.
Excise Law Overhaul
The second bill is to amend the Central Excise Act, 1944. It is believed that the amendment aims to give a modern look to the colonial era law, especially keeping in mind the introduction of GST. However, there is no proposal to widen the tax net. As on date, it is levied on only to crude petroleum, motor spirit (petrol), high-speed diesel, aviation turbine fuel (ATF), natural gas, and tobacco and tobacco products.
Published on November 30, 2025
