Now Reading: Parliament clears bill curbing states’ mineral taxes
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Parliament clears bill curbing states’ mineral taxes
The Story in Brief
The Story in Brief
Parliament has passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which bars states from imposing additional taxes, cesses or levies on mineral rights and mineral-bearing lands. The Bill, now awaiting the President's assent, overrides a July 2024 Supreme Court judgment that upheld states' power to tax minerals.
Mineral-rich states such as Odisha, Jharkhand and Chhattisgarh say they will lose a major revenue source, including an estimated Rs 1.5-2 lakh crore in retrospective arrears. Jharkhand Chief Minister Hemant Soren noted that mining revenue accounted for 84.9 per cent of the state's own non-tax revenue in 2024-25. The Centre argues the uniform regime will attract investment, especially in critical minerals like lithium and cobalt.
The Indian Opinion
Both sides have a point: inconsistent state taxes hurt investment, but states like Jharkhand depend on mining revenue for nearly 85 per cent of non-tax income. The 2024 Supreme Court ruling backed state powers, yet the Centre is now using its constitutional authority over mineral development. The real test is whether the promised boost in private investment will offset the states' immediate fiscal hit. Will the Centre offer a compensation formula, or will states move the court again?.
Sources (2): energy.economictimes.indiatimes.com, thefederal.com
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
Ashin Xavier: interesting
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