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New Tobacco Cess Bills: How Sitharaman Aims to Fund Health and Security

Finance Minister Nirmala Sitharaman has introduced two new bills in Parliament. These proposals aim to place a cess on tobacco products to raise money. However, some opposition MPs have already voiced their concerns about the legislation. The Winter Session will consider these bills alongside several other important pieces of legislation.

Key Points: Sitharaman Introduces Tobacco Cess Bills in Lok Sabha

  • Finance Minister introduces two bills to impose a cess on tobacco manufacturing
  • Opposition MPs argue the bills lack health warnings and burden citizens
  • The proposed cess aims to generate funds for security and public health
  • The bills are part of 13 legislative proposals listed for the Winter Session
2 min read

Nirmala Sitharaman introduces two Bills in Lok Sabha aimed at levying cess on tobacco products

Finance Minister introduces two bills to levy a cess on tobacco products, aiming to fund national security and public health initiatives amid opposition.

"It will augment the resources for meeting expenditure on national security and for public health - Nirmala Sitharaman"

New Delhi, December 1

Finance Minister Nirmala Sitharaman introduced two bills in Lok Sabha on Monday, the first day of the Winter session of Parliament, aimed at levying cess on tobacco products and their manufacturing.

Minister Sitharaman introduced the Central Excise (Amendment) Bill, 2025, and Health Security se National Security Cess Bill, 2025, in Lok Sabha, soon after the Parliament convened after a brief adjournment till noon.

According to the minister, "It wil) augment the resources of for meeting expenditure on national security and for public health, and to levy a cess for the said purposes on the machines installed or other processes undertaken by which specified goods are manufactured or produced, and for matters connected therewith or incidental thereto."

Sougata Roy, AITC MP, opposed the Central Excise (Amendment) Bill, 2025, stating that the Bill does not mention the dangers of tobacco on packets, and the government only seeks to attract excise duty from such products.

Sougata Roy, AITC MP, also opposed the introduction of the Health Security se National Security Cess Bill, 2025, noting that he is against imposing any cess that would not be shared with states, termed the bill ambiguous, and added it lacked information about the dangers of tobacco products.

DM Kathir Anand, DMK MP, objected to the Health Security se National Security Cess Bill, 2025, noting that the Bill appears technically sound but imposes a severe financial burden on the ordinary citizens of India.

The government has listed a total of 13 Bills for consideration during the Winter Session, many of which have not been examined by a Standing Committee.

The other legislative proposals likely to be taken up this Winter session include the Jan Vishwas (Amendment of Provisions) Bill, 2025; the Insolvency and Bankruptcy Code (Amendment) Bill, 2025; the Repealing and Amending Bill, 2025; the National Highways (Amendment) Bill, 2025; the Atomic Energy Bill, 2025; the Corporate Laws (Amendment) Bill, 2025; the Securities Markets Code Bill (SMC), 2025; the Insurance Laws (Amendment) Bill, 2025; the Arbitration and Conciliation (Amendment) Bill, 2025; and the Higher Education Commission of India Bill, 2025.

As per the schedule, the Winter session of Parliament will continue till December 19, 2025.

- ANI

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Reader Comments

P
Priya S
While the intent is good, I agree with the MP's point. Just levying a cess won't deter consumption if the packets don't have strong, graphic warnings. The government needs a multi-pronged approach, not just a tax one.
R
Rohit P
Another day, another cess. Where does all this money go? The common man's pocket is already empty. First fuel, now this. The financial burden is real, as the DMK MP said.
S
Sarah B
Interesting to see the opposition's concerns about state shares and ambiguity. In a federal structure, these are valid points. The bill should be clearer on fund allocation and shared equitably with states for health infrastructure.
V
Vikram M
Tobacco is a major cause of cancer and heart disease in India. Any measure to reduce its use is welcome. But the government must also invest heavily in awareness campaigns in rural areas, not just collect tax.
K
Karthik V
They've listed 13 bills! How many will actually get proper discussion? Rushing legislation without committee scrutiny is not good for democracy. Hope the winter session is productive and not just about passing bills in haste.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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