The Central Government has proposed a new legislation titled Health Security Se National Security Cess Bill 2025, aiming to strengthen India's preparedness for future health crises and national emergencies. The Bill lays the foundation for imposing a dedicated Health Security Cess and National Security Cess on selected goods and services to raise funds for public welfare and national safety programs.
Purpose of the Cess
According to the Bill, the objective of the levy is to generate additional revenue required for ensuring:
- Robust health infrastructure
- Emergency response capabilities
- Strengthening national security mechanisms
- Funding social protection measures during large-scale crises
How the Cess Will Be Levied
The cess may be charged on specified goods and services as notified by the Government. Revenue collected will be credited to dedicated government accounts and can be used only for the purposes defined in the Bill, ensuring transparency and targeted utilization.
The cess will be over and above existing taxes, including GST, customs duty, and excise duty. This aligns with existing constitutional provisions empowering the Union Government to levy such cesses.
Exemptions & Special Provisions
The Bill also allows the Centre to exempt specific goods or categories of goods from this cess in the interest of the public. Additionally, amounts collected but remaining unspent may be carried forward for future health or national security emergencies.
Accountability & Rulemaking
The Government will frame detailed rules covering:
- Levy and collection mechanisms
- Procedural compliance
- Utilization and reporting of cess proceeds
- Conditions for exemptions
The Bill empowers the Central Government to modify its provisions through notifications and to address any difficulties during implementation.
Why This Matters
The proposal comes amid global health and geopolitical challenges, where nations are strengthening risk-management mechanisms. For India, this cess could become:
- A dedicated funding stream for future pandemics
- A financial buffer for national emergencies
- A tool to improve national resilience without altering the current tax structure
What Happens Next
Once tabled in Parliament, the Bill will be reviewed by the concerned committees. After approval, the Government will notify the exact list of goods and services on which the cess will apply.
Official copy of the notification has been attached
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