‘Against federalism’: Oppn against Bill to levy cess on pan masala units

New Delhi: Opposition members on Monday opposed the Health Security se National Security Cess Bill in the Rajya Sabha, saying it is against the spirit of cooperative federalism and will deprive state governments of funds to maintain health infrastructure.

The Bill has provisions allowing the Centre to levy a special cess on pan masala manufacturing units.

During the debate, Opposition parties, including Left, Shiv Sena (UBT), and IUML, opposed the Bill in the Upper House, saying it is anti-federal.

Sandosh Kumar of CPI said states like Kerala are getting multiple financial shocks on one side, while financial concentration is happening in the hands of the Union government.

“This is continuously happening and this new Bill introduced by the FM is another addition to that motto of the Modi govt,” he said, asking whether the ruling BJP believes in the federal structure?

Kumar said health is a state subject and the finance minister “was kind enough to declare in the Lok Sabha” while replying to the debate on this Bill last week that “they are going to introduce certain schemes to the states as if states are under the generosity of the Union government”.

The Health Security se National Security Cess Bill, 2025 should have clear-cut provisions for the states, he said.

“Health is the main area of states. So, how are you going to provide enough funds to them? There are many schemes, schemes under the control of the Central government. And if you fail to implement one or two criteria, then this fund will be lost. This is continuously happening. So, I request to come up with clear-cut policies to help the states,” he said.

Kumar further said that the government has no idea of pan-masala units in the country.

“Do they have any rough idea of these kinds of units in our country? In her opening remarks, she (FM) did not say anything about it. I think with this new legislation, this business, of course, a sin business, will be concentrated more in the hands of a few monopolies,” he said.