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Sitharaman Introduces Two Bills to Impose Cess on Tobacco Manufacturing in Winter Session

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New Delhi: The Winter Session of Parliament opened on Monday with Finance Minister Nirmala Sitharaman introducing two key bills in the Lok Sabha aimed at imposing a cess on tobacco products and the machinery used in their manufacturing.

Soon after the House reconvened following a brief adjournment, Sitharaman tabled the Central Excise (Amendment) Bill, 2025, and the Health Security se National Security Cess Bill, 2025. She said the proposed legislation would help mobilize additional resources for national security and public health, adding that the cess would apply to machinery or processes involved in producing specified goods, including tobacco.

The introduction of both bills drew strong objections from opposition members. AITC MP Sougata Roy opposed the Central Excise Amendment Bill, arguing that it ignored health warnings about tobacco products and was focused solely on increasing excise revenue. He also criticized the Health Security se National Security Cess Bill, calling it ambiguous and noting that cess collections are not shared with states.

DMK MP DM Kathir Anand objected as well, stating that while the bill may be technically sound, the proposed cess would place a heavy financial burden on ordinary citizens.

The government has listed 13 bills for consideration during the Winter Session, several of which have not been reviewed by a Parliamentary Standing Committee. Other major proposals likely to be taken up include amendments to the Insolvency and Bankruptcy Code, the National Highways Act, the Arbitration and Conciliation Act, and the Insurance Laws, along with the introduction of the Higher Education Commission of India Bill, 2025.

The Winter Session is scheduled to run until December 19, 2025.

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