Finance Minister Nirmala Sitharaman introduced the Health Security se National Security Cess Bill, 2025 on December 4, 2025. The bill proposes a tax on machines used in making pan masala. The tax will fund India’s health and national security. The cess targets machines like fill and seal and packing machines used to produce pan masala pouches, tins, or other containers. The cess rate depends on the number of pouches produced per minute and the weight of pan masala in each pouch. There are four categories based on pouch output from up to 500 to above 1500 pouches per minute. The cess ranges from ₹1.01 lakh to about ₹2.5 crore monthly per machine. Tax must be paid by the 7th of each month via self-declaration. The government can exempt anyone if in public interest. Any violation of the bill can lead to up to 5 years imprisonment. India has high tobacco use, with 42% of men and 14% of women using tobacco products, according to the Global Adult Tobacco Survey (GATS-2). India is home to 70% of the world’s smokeless tobacco users. Tobacco use increases cancer risks, and India leads in male cancer deaths. Experts say tobacco use cost India ₹1.77 lakh crore in 2016-17. Despite bans, tobacco products remain widely accessible due to policies and marketing. WHO recommends taxing tobacco at 75% of retail price, but India does not fully follow this. In Parliament, MPs raised concerns. They said the bill does not fund anti-tobacco campaigns. Some worried about the impact on tobacco farmers and beedi workers. Opposition MPs said the bill aims to fill a budget gap after compensation cess ended and doesn’t mention sharing funds with states. TMC MP Sougata Roy criticized the criminal penalties and pointed out that companies use indirect ads for tobacco products by promoting related items like elaichi powder. Finance Minister Sitharaman said the bill will reduce tobacco farming and usage. She added that 41% of excise duties from tobacco will be shared with states. A similar sharing plan will apply to this new cess.