
Union Finance Minister Nirmala Sitharaman speaks in the Lok Sabha.
Credit: PTI
The BJP slammed Congress MP Renuka Chowdhury on Wednesday over her "bhow bhow" response to reports that some ruling party members are seeking to bring a privilege motion against her, saying it shows that destroying the dignity of Parliament has now become a formally-structured and well-thought-out campaign of the main opposition party.
The ruling party also flayed the Congress over its national spokesperson Ragini Nayak sharing a purported AI-generated video showing Prime Minister Narendra Modi selling tea at what appeared to be a red-carpet event, saying those who "robbed" the country are rattled that a tea seller has occupied the top post in the country.
MP Vijaykumar alias Vijay Vasanth gives Adjournment Motion Notice in Lok Sabha to the air pollution in Delhi-NCR and vast parts of North India.
Congress MP Manish Tewai gives Adjournment Motion Notice in Lok Sabha, "to discuss the life and death emergency without further delay" amid the rising air pollution in Delhi-NCR and vast parts of North India.
"I have said that the value of Rupee is depreciating, it means that the economic condition of this country is not good. They always say that we are developing and the economic condition is good. But when the Rupee falls, it shows what your economic condition is," Kharge said.
"Which season should we enjoy? Look at the situation outside. Like Sonia ji said, children are unable to breath. She has asthma, and senior citizens like her are facing breathing difficulty. The situation keeps getting worse year after year. Only statements are made every year, no concrete action is taken. We have all said that the Govt has to take action and we all stand with them. This is not a political issue that we would point fingers at each other," Priyanka Gandhi said.
The MP in Lok Sabha says ultra-processed food is resulting in rise in obesity. He calls for a definition for such food and calls for a ban on advertising of this category.
Sharma said, "The government has invested more than Rs 4000 crore under NCAP (National Clean Air Programme) and promoted electric vehicles...After so many efforts, today the results have started to come in...This is an irresponsible opposition that holds protests every day by indulging in senseless rhetorics."
In addition to 40 pc GST, Health and National Security Cess will be levied on production capacity of pan masala unit, the finance minister said, adding that revenue from Health Security se National Security Cess Bill will be shared with states for specific health schemes.
New barrier-less highway toll collection system to be in place across India within one year, adding that the the current system of toll collection will come to an end within a year, and an electronic system will take its place, ensuring a seamless experience for highway users. The new system has been rolled out in 10 places
"This toll system will end. There will be no one to stop you in the name of toll. Within a year, an electronic toll collection will be implemented across the country," he said.
Gadkari also said that currently 4,500 highway projects worth Rs 10 lakh crore are ongoing across the country.
AITC MP Sougata Ray blames the government for being short on funds. He claims that the latter is bound to be out of funds given the fact that the govt keep spending unnecessarily on things like the New Parliament building and the 'luxurious PM house'. Talking about the bill, calling the bill 'quite boring' he further claimed that the excise duty bill should be rejected because it is 'draconian' and says the government is plotting to throw anyone in jail who is unable to pay the cess.
MP Sumathy asks for evidence and clarification of how can everyone rest assured whether the funds collected will be used for national security and health. She calls out on the government's decision of empowering finance officers without governnace.
NCP Sule the intention of the bill but objects to this being a cess. Sule claims if this is indeed for the betterment of the nation as a whole, then convert this into a tax and share it with the states too. She calls out on the criminalising and the imprisonment rules laid down in the bill concerning excise duty on pan masala.
Shiv Sena MP Mhaske not only lauds the idea of the bill but also calls takes a jibe at the opposition saying that whenever the government brings in a new cess for the development of the country it starts inducing pain in the opposition's stomachs. He clarifies that even though several MPs are concerned about the cess not being used properly for the welfare of the country, everytime we cross a 'worldclass highways', everytime we see Vande Bharats, or be it the facilities like Atal Setu, it is because of the cess collected by the government for the public.
RJD MP Sudhakar Singh rejects the bill and claims that this cess is clearly been introduced for the government's own benefits and funds will never reach the to public who actually need it. "What's the use of such a cess when there is no control over who sells these pan masalas and to whom?", asked the MP raising the concerns over sales of pan masalas to children and the lack of governance over the sales of tobacco.
Tamil Nadu CPI(M) MP R. Sachithanantham expresses concerns over the revenue of the cess not benefitting the State Governments.
He requests the Financial Minister, the government to share 50% of cess revenue to the states.
He further claimed that there is a need for reduction in taxes on essential items and suggested taxing corporations and wealthy individuals instead.
Finance Minister Nirmala Sitharaman clarified that the proposed tax increase on cigarettes is an excise duty and not a cess, stressing that the revenue collected from it will be shared with the States. “This is not a cess; this is excise duty. The amount will be redistributed to the States as per the Finance Commission’s recommendations,” she told the Rajya Sabha.
Explaining the rationale behind the revision, the Minister noted that India’s current tax incidence on cigarettes—about 53% of the retail price—remains significantly lower than the World Health Organization’s recommended benchmark of 75%. She said that even after the introduction of GST, and despite the presence of the compensation cess, taxation on tobacco products has not matched global standards. Sitharaman highlighted the WHO’s “affordability index” for tobacco products, adding that nearly 80 countries revise tobacco taxes annually to discourage consumption. The government, she said, considered these factors while framing the new rate structure.
On the issue of beedis, the Finance Minister said the proposed tax regime places beedis under the 18% GST slab, explaining that after the removal of the 28% slab, all “sin goods” moved to a 40% tax category, but beedis were kept at a lower rate. She added that while the GST rate for beedis is set at 18%, the basic excise duty will be 10%, ensuring that the overall tax incidence remains unchanged from the earlier structure.
For beedi workers, the Minister outlined several welfare measures, including healthcare facilities, reimbursement for specialised medical treatments, financial assistance for children’s education, and a housing subsidy of Rs 1.50 lakh per beneficiary for the construction of pucca houses. Various other schemes introduced over the years, she added, continue to support the welfare and livelihood needs of beedi workers.
SP MP Bhadauria alleged that the cess was merely a tactic by the government to cover up its failure to improve the falling value of the rupee. He added that the move would only encourage people to consume more tobacco and pan masala, allowing them to justify it as contributing to the government's revenue for public welfare.
The legislation had secured passage in the Lok Sabha a day earlier.
Once enacted, the amendment will allow the Centre to revise and increase central excise duties on tobacco and related products. This change is aimed at ensuring fiscal flexibility after the GST compensation cess — currently imposed on items such as cigarettes, chewing tobacco, cigars, hookah, zarda and scented tobacco — is phased out.