Q1. The Health Security and National Security Cess Act 2025 imposes a fixed levy on pan masala and tobacco based on which criterion?
A Per unit of production
B Per machine used in manufacturing Correct
C Percentage of retail sale price
D Per employee in the factory
Explanation
The Act imposes a fixed levy per machine on the manufacture of pan masala and tobacco products, replacing the earlier ad valorem (percentage-of-value) GST Compensation Cess. The machine-based levy makes tax evasion structurally harder since liability is tied to production capacity, not declared output value.