New Sin Goods Cess Likely as Parliament Opens; Insurance Bill Moves
New Sin Goods Cess Likely as Parliament Opens; Insurance Bill Moves
Parliament to discuss a Health Security se National Security Cess on pan masala and other items, while boosting insurance sector investment with a 100% FDI cap.
When the winter session begins, the government is lining up two key bills for the Lok Sabha. Union finance minister Nirmala Sitharaman is set to introduce the Health Security se National Security Cess Bill, 2025, to levy a cess on the production capacity of specified items. Producers will self-declare their location and capacity, and as an example, a pan masala facility with 500 units per minute per machine could see a levy of about ₹100 per month per machine. The bill may later extend the levy to other sin goods such as cigarettes and tobacco products, excluding bidis, with the central government empowered to add items in the future in the interest of public welfare. Once notified in the official gazette, the cess will come into effect.
Cover image source: New cess bill on sin goods likely as Parl opens today 🔗
