December 4, 2025
Lok Sabha MP Sougata Ray speech on The Health Security Se National Security Cess Bill, 2025
Hon. Chairperson, many people asked me why I am speaking on such a boring Bill which has nothing in it. I am speaking because it gives me an opportunity of mentioning other things which I could have mentioned in ‘Zero Hour’. But these are related to the vagaries and mood of the .. So, I speak here. I notice that the Finance Minister is smugly sitting to pass this Bill on a day when rupee has fallen to an all-time low. It has crossed Rs. 90 per dollar. Now the economy is in such a terrible condition, but the Finance Minister has not cared to come and make a statement in the House. It is very unfortunate. The hon. Finance Minister is speaking about the health security at a time when the citizens in Delhi are demonstrating against air pollution. The hon. Finance Minister has not announced any scheme to control air pollution. Sir, you may be knowing that they say that living one day in Delhi is
equivalent to smoking 25 ciggarettes. Now, there is no plan. This air pollution goes on unchecked in Delhi. The hon. Finance Minister is trying to hindi-ise herself. This law is called – she likes this – वििाद सेविश्िास तक, हैल्थ वसक्योरिटी से नेशनल वसक्योरिटी तक। यह क्या है? यह न वहदी ह ं ैऔि न ही अग्रं ेजी है। वििाद सेविश्िास तक औि हैल्थ वसक्योरिटी सेनेशनल वसक्योरिटी तक, यह क्या भाषा है, फाइनंस विवनस्टि ही हि लोगों को एक्सप्लेन किगोी। ं Sir, this cess is on pan masala. Yes, pan masala is a big business in India. We know that, in Kanpur, some years back, they raided the premises of a pan masala manufacturer ‘Shikhar’. An amount of Rs. 196 crore was discovered during that raid. Now, we see the top film stars, like Shri Ajay Devgn, advertise Vimal Elaichi and they used to advertise ‘Shikhar’ also. I do not know what incentive is being given to this. Sir, now, if I may mention, this is a harsh law. I will come to that later. These are demerit goods. The goods, such as tobacco and pan masala are associated with serious public health risks. Pan masala causes oral cancer Now, the Government is so desperate for funds that it is trying to raise revenue from demerit goods. Yesterday, it did on all forms of tobacco and today, it doing on pan masala. It is so desperate for finances and for resources. For the security of the country, they have to depend on a demerit good like pan masala. This is sad and quite ridiculous, if you ask me.
Sir, the difference in this cess is that it is not on production capacity, but it is on the machines. It is on machines, that is, not on actual production or supply. Am I right? I am saying that cess should be levied on production capacity and not on actual production or supply. That is, it will be levied on machines. It will be a cess on the machine capacity. Now, I would like to know why only pan masala? They say that pan masala is under Tariff 21069020 of the First Schedule to Customs Tariff Act, 1975. This industry is characterised by a high number of small and segmented manufacturing units, frequent changes in machine configuration with high value addition, low raw material cost and ease of transport of finished goods. It is very light You must have seen small packets of Shikhar or Pan Parag, pan masala. What they do is that they first bring the supari, then they grind it. Then, they add a particular perfume, which gives pan masala its distinctive flavour. So, it is very cheap to manufacture, but the gain is enormous. You see that in rural areas and even in urban areas, people take five-six packets of pan masala and they keep it in their mouth for a long time which may lead to oral cancer. This is why, the Finance Minister is trying to raise her revenue. Now, the Government says that the capacity based levy could help curb evasion, ensure level playing field, stabilise market pricing and strengthen revenue integrity. Pan masala is addictive and causes public health issues at large scale and particularly for the poorer masses. Poor people either take biris or pan masala. The whole question arises whether by increasing the cess, the price of the packet is increased, though the Government says that the price of pan masala will not be affected, and will only collect revenue from pan masala sources. So, there is a case where the cess will be levied and collected from taxable persons who own, operate, manage or control the machines or processes used to manufacture specified goods directly or through any authorised arrangement. Sir, I went through the Bill thoroughly, though it is quite boring. The main thing is that the Government has been talking, shouting over the housetops that it wants to decriminalise offences in business. They had a Committee which removed imprisonment policy out of the Company Law. Now, the pan masala, cess is … विविविनलाइज़ कहांहुआ? आप लोगो कहतेहंवक विविविनलाइज़ किगोंेfor the ease of doing business. Whenever a taxable person, who was in control of the machine, fails to pay the Cess, fails to furnish the returns, fraudulently obtains refund or obstructs or prevents any officer, then there would be a fine and imprisonment for a term, which may extend to five years. …िंभी यही कह िहा हू। आप एक तिफ कह िह ं ेहंवक आप विजनेस अफंसेज़ को विविविनलाइज़ किगोंे। आप उनको जेल भेजनेका इंतजाि कि िहेहं। इसके िाद आप आय कि िंभी यह प्रािधान कि दगोंे। आप कहंगोेवक जो लोगो आय कि नहं भिगोंे, उनको जेल िं िाल दगोंे। What is the policy of the Government? Do you want to decriminalise financial offences or do you want to criminalise them? That is a good question that needs to be answered properly. Sir, it should be upto five years for Rs. 5 crore, three years for Rs. 2.5 crore and above, and then for Rs. 1 crore, it will be one year or whatever, plus they have introduced power of confiscation which is again draconian. Now, the hon. Member, who spoke from the Congress Party, said that ultimately, it will lead to a severe Inspector Raj. Now, you say that in income tax, we will have faceless assessments. An Income Tax Officer need not see the taxpayer. These are belonging to the Central Board of Indirect Taxes and Customs. And now, under this law, the inspectors or the officers will have the
power to inspect. People will have to give returns and if returns are not given, then, punishment is there. So, in which way is the Government going? I would like the Finance Minister to clarify it. I understand the desperate urge of the Government to get more money. You need money. A new Parliament Building costs Rs. 20,000 crore. The Prime Minister’s ‘Seva Teerth’ costs hundreds of crores. … And this is what you are saying.The Government is thinking on two lines. On the one hand, you spend money like water. When there was no necessity for a new Parliament Building, you built a new Parliament Building. When there was no necessity, and the Prime Minister was living at such a big house in Race Course Road, Lok Kalyan Marg, now, you are building that. … Why does the Government need so much of money? …The Government needs money for splurging. … Sir, do you understand what splurging means? They are splurging. … I am totally …आप सोवचए वक… (व्यिधान) या आपकी प्रायोरिटी हैिकान िनाना, नई पावलफयािंट विवल्िंगो िनाना औि खचाफही खचाफकिना। इसके वलए वसगोिट, िीड़ी, च े ेरूट औि पान िसा सेखचाफवनकालो तथा उसके वलए कड़ा सेकड़ा कानून लाओ।This is a draconian law. You want to earn revenue. You make an arrangement like the Income Tax Faceless Assessment. You can make an easy assessment of the tax to be paid by the taxable person. But you are not doing it. Rather you are raising money and saying, ‘You must pay us money from pan masala otherwise we will send you to jail and otherwise we will confiscate your machines, etc.’. Then, you spoke about it but I could not follow all that you said. Nirmala ji also spoke in Hindi. So, I could not follow all that she said because we are Bengalis and we do not follow so much of Hindi. So, the problem remained …सि, हि तो िगोाली ह ं ंऔि िगोाली ही िह ं ंगोे। …They are making a South Indian lady to speak in Hindi so that she can familiarize herself. सि, िंइस विल पि अपनी िात कं क्लूि कि िहा हू। You have laid ं down an elaborate and separate mechanism regarding realising cess on Pan Masala. First, you have a Commissioner; then the Commissioner allows for an appeal. Thereafter, you go to the Appellate, then even to the High Court. They have the power to confiscate machines, the power to arrest, and strangely, in the case of a non-cognizable and bailable offence, the proper officer not below the rank of Assistant Commissioner shall, for the purpose of releasing an arrested person on bail or otherwise, have the same powers and be subject to the same provisions as an officer-in-charge of a police station. संट्रल एक्साइज़ विपाटफिंट के ऑवफसि को आईसी – थानेका ऑवफसि इंचाजफिना वदया गोया। I do not know what the logic is in this Law. It is constantly mentioned in Amit Shah’s law, भाितीय नागोरिक सिक्षा स ु वहता क ं े तहत इसका एप्लीकेशन वकया जाएगोा। ऐसेनहं होता है। हिािे दश ि े ंइिेज़न ज्यादा है। आप इस इिेज़न को रिलाइज़ किंऔि उसके वलए एक ट्रासपं ेिटं िेकेवनज्ि िनाए। You are giving all the powers from Assistant Commissioner to ं the Commissioner to realise cess on pan masala. Therefore, I think that this Bill should be sent to a Select Committee of Parliament to look into this.
