Parliament Winter Session: The 6th Session of the 18th Lok Sabha and the 269th Session of the Rajya Sabha are set to commence on Monday (December 1) at 11 am. The Parliament's winter session is ready to witness a wave of significant bills. Finance Minister Nirmala Sitharaman will likely table the Health Security to National Security Cess Bill, 2025, today. The bold move aims to dramatically reshape one of the country's loosely regulated sectors.
New cess bill on sin goods likely today
The cess bill's proposal is more than a routine tax measure. It seeks to enforce a special cess on the machinery and manufacturing processes that produce pan masala, gutkha, and other tobacco-based products. The move marks a shift from the traditional practice of levying taxes on finished goods based on their production. The cess on sin goods will be calculated on the output capacity of its machines, rather than the factory's production.
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This bill aims to augment the resources for meeting expenditure on national security and public health. It seeks to impose a cess on the machines installed or other manufacturing processes. The Bill has been allocated six hours for discussion in the Lok Sabha.
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Manufacturers to deposit cess monthly
Under the new framework, the Centre wants to secure fresh revenue for health and national security, reports added. Manufacturers are required to deposit the cess monthly, regardless of fluctuations in their output. Relief shall be granted only when a machine or process shuts down for more than 15 days, reports added.
Every manufacturer will be required to register with the Central Government, submit their monthly returns, allow inspections, and audit of facilities. According to reports, the Bill proposes up to 5 years imprisonment and hefty fines for any violations. Additionally, the government may double the cess, based on circumstances.
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