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States to get share of health cess via schemes, says FM
Financial Express Bengaluru
|December 05, 2025
FINANCE MINISTER NIRMALA Sitharaman on Thursday said the proposed Health and National Security Cess will apply exclusively to demerit goods such as pan masala, creating a “dedicated and predictable resource stream” for health and national security initiatives.
Sitharaman stated that the cess is intended to discourage consumption of products associated with significant health risks. It will be imposed over and above GST and calculated on the basis of production capacity in pan masala manufacturing units.
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