Now Reading: Parliament passes bill curbing states’ power to tax minerals
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Parliament passes bill curbing states’ power to tax minerals
Parliament has passed the Mines and Minerals (development and regulation) Amendment Bill, 2026, which restricts state governments from imposing taxes, cesses, or levies on mineral rights and mineral-bearing lands. The Lok Sabha…
The Story in Brief
Parliament has passed the Mines and Minerals (development and regulation) Amendment Bill, 2026, which restricts state governments from imposing taxes, cesses, or levies on mineral rights and mineral-bearing lands. The Lok Sabha cleared it by voice vote on Wednesday amid opposition protests; the Rajya Sabha passed it on Thursday.
The bill overturns a July 2024 Supreme Court ruling that upheld states' power to tax minerals. It invalidates any such levy not collected before the law’s commencement, though amounts already deposited will not be refunded. Union Minister G Kishan Reddy said the Centre aims to ensure uniform mineral rates and that states suffer no revenue loss, pointing to their increased revenue share since 2014. Opposition parties called the bill an attack on state autonomy.
The Indian Opinion
The Centre paints this as a uniformity measure, but the real sting is in the retroactive clause: any tax not collected before this law takes effect is dead. States will lose a potential revenue stream, and they know it. The minister’s promise of no revenue loss rings hollow when the Supreme Court had explicitly upheld state taxing powers in July 2024. Watch for the first legal challenge from a mineral-rich state like Odisha or Jharkhand. That case will settle who really controls the ground beneath our feet.
Sources (2): hindustantimes.com, newindianexpress.com
This story was synthesised by AI from the 2 sources linked above.
