Parliament passes bill to rein in state mining levies
Parliament has passed a bill restricting new state taxes on mining and mineral-bearing land, aiming to standardise levies and end retrospective demands.
India's parliament on Thursday approved legislation that curbs the ability of state governments to impose fresh taxes, cesses, or other levies on mineral rights and mineral-bearing lands. Under the new law, such charges can only be introduced if permitted by conditions set by the central government.
The bill is designed to establish a uniform tax framework for the mining sector, addressing what the federal government has called an excessive and uneven fiscal burden on miners across different states. The previous system, it said, had led to multiple overlapping taxes and levies, varying rates between states, and retrospective demands that created uncertainty for mining companies and investors.
Beyond taxation, the law expands the Centre's regulatory reach to include mineral-bearing lands containing mineral resources. This extends its role, which was earlier limited to mine regulation and mineral development.
The legislation also invalidates any unpaid or uncollected levies that states may have sought before the law comes into force, providing relief to miners facing past dues.