Nirmala Sitharaman new Tax: Cigarettes, pan-masala will be expensive! What is the government’s plan? Budget approved in Lok Sabha
- Items like pan masala will be more expensive
- Paving the way for strengthening public health infrastructure
- By Nirmala Sitharaman Government’s role on several key issues
Bad news is coming for the citizens who consume substances like tobacco, cigarettes, bidis and pan masala. Parliament of Loksabha In the winter session Health Security and National Security Cess Bill passed. After the bill becomes law, the government will now impose additional tax on products like cigarettes and pan masala. The government says that the budget generated from this increased tax will be used for national security. This information was given by Finance Minister Nirmala Sitharaman in the Lok Sabha on Friday (December 5).
After this bill is passed, items like pan masala will become more expensive. During the debate on this bill, there was a long debate in Parliament. After two days of debate, the bill was passed in the Lok Sabha. Finance Minister Nirmala Sitharaman said that Kargil war happened due to lack of preparation. Army generals had said that since the early 1990s, due to budget constraints, the Army had only 70-80% of its authorized weapons, ammunition and equipment. “We don’t want that stage to happen again in India,” he said.
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He said the bill paves the way for strengthening public health infrastructure. The Ministry’s focus is on reducing public health risks. This cess will also help on national security fronts. Finance Minister Nirmala Sitharaman explained the government’s stand on several key issues. He said that today’s world is an era of high-tech warfare. Areas like precision weapons, space assets and cyber operations are very expensive. India suffered losses in Kargil as the army had only 70-80% of its weapons and ammunition due to budget constraints. He said that the country does not want to return to that situation again.
Cess falls entirely under the jurisdiction of Parliament. Every process from tariff fixation to allotment will be subject to the approval of the House. Section 7 clearly outlines the entire framework. Regarding the discussion on increasing taxes on pan masala, he said the non-profitable commodity will not be cheap. Raising revenue is necessary to ensure both national security and public health. While introducing the Bill, the Finance Minister said that no cess will be levied on any essential goods, but cess will be levied on harmful goods which cause harm to health. He said that the purpose of this bill is to provide funds for essential national security without burdening common citizens.
During the debate on the bill, MP Hanuman Beniwal and other opposition MPs opposed it and demanded its withdrawal. Beniwal asked the government, “You are going to make pan masala expensive and celebrities are promoting gutka and pan masala. What is the government doing about it?” Congress MP Shashikant Senthil said that it is difficult to understand. Such a clause was found in PMLA.
Nirmala Sitharaman said that during Operation Sindoor, all the three armed forces did an excellent job, requiring technical equipment. This is modern warfare and that is why we need to levy taxes. This entire fund will be spent for the protection of the citizens of the country. We are imposing this cess only on demerit items. He said that as Finance Minister, his responsibility is to raise funds.
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