+
Bill to Bar State Taxes on Minerals Tabled in Parliament
COAL & MINING

Bill to Bar State Taxes on Minerals Tabled in Parliament

The Union government introduced the Mines and Minerals (Development and Regulation) Amendment Bill, 2026 in the Lok Sabha to bar state governments from imposing taxes, cesses or levies on mineral rights and mineral-bearing lands. The measure was described as necessary to prevent excessive and unpredictable taxation that the government said would make the sector commercially unviable. The bill was tabled during the Monsoon session amid protests.

The amendment seeks to give the Centre greater regulatory command over mines and to extend that reach to mineral-bearing lands for the sustainable and uniform development of minerals. Opposition leaders argued the proposal would undermine state fiscal powers and federalism and urged a detailed scrutiny. A Congress MP asked that the bill be referred to the Parliamentary Standing Committee on Coal, Mines and Steel for closer examination.

The draft follows a July 2024 Supreme Court ruling that upheld the power of states to levy taxes on mineral rights and mineral-bearing lands separate from royalty under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). The court held that royalty under the Act was not a tax and that the Act did not limit state legislative power to impose levies. The court later permitted states to recover past dues over 12 years beginning April one, 2026 while barring penalties and additional interest.

Industry observers estimated a financial impact in a range of Rs one and a half to two trillion (tn), with public sector undertakings facing a burden of roughly Rs 700 billion (bn). The retrospective recoveries from April one, 2005 have been contested by the Centre and private mining entities and remain subject to litigation. The bill proposes a new section to invalidate state levies that are uncollected or undeposited as of the amendment coming into force while preserving levies already collected.

The amendments also empower the Centre to frame conditions for any state levies and to regulate mineral-bearing lands in accordance with MMDR Act parameters, which the government said would curb unbalanced taxation and supply chain distortion. Critics and environmental experts warned that shifting regulation from mines to mineral-bearing land could constrain state capacity to levy charges for environmental remediation and public health. Lawmakers continue to press for committee review to safeguard state fiscal space and ecological protections.

The Union government introduced the Mines and Minerals (Development and Regulation) Amendment Bill, 2026 in the Lok Sabha to bar state governments from imposing taxes, cesses or levies on mineral rights and mineral-bearing lands. The measure was described as necessary to prevent excessive and unpredictable taxation that the government said would make the sector commercially unviable. The bill was tabled during the Monsoon session amid protests. The amendment seeks to give the Centre greater regulatory command over mines and to extend that reach to mineral-bearing lands for the sustainable and uniform development of minerals. Opposition leaders argued the proposal would undermine state fiscal powers and federalism and urged a detailed scrutiny. A Congress MP asked that the bill be referred to the Parliamentary Standing Committee on Coal, Mines and Steel for closer examination. The draft follows a July 2024 Supreme Court ruling that upheld the power of states to levy taxes on mineral rights and mineral-bearing lands separate from royalty under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). The court held that royalty under the Act was not a tax and that the Act did not limit state legislative power to impose levies. The court later permitted states to recover past dues over 12 years beginning April one, 2026 while barring penalties and additional interest. Industry observers estimated a financial impact in a range of Rs one and a half to two trillion (tn), with public sector undertakings facing a burden of roughly Rs 700 billion (bn). The retrospective recoveries from April one, 2005 have been contested by the Centre and private mining entities and remain subject to litigation. The bill proposes a new section to invalidate state levies that are uncollected or undeposited as of the amendment coming into force while preserving levies already collected. The amendments also empower the Centre to frame conditions for any state levies and to regulate mineral-bearing lands in accordance with MMDR Act parameters, which the government said would curb unbalanced taxation and supply chain distortion. Critics and environmental experts warned that shifting regulation from mines to mineral-bearing land could constrain state capacity to levy charges for environmental remediation and public health. Lawmakers continue to press for committee review to safeguard state fiscal space and ecological protections.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

TransIndia Launches World View Collection at Meridian

TransIndia Group has recently launched ‘The World View Collection’ at TransIndia Meridian, its residential development in Mumbai’s Sion-Matunga Corridor. The campaign introduces residences located on the 22nd floor and above, offering expansive views of the cityscape, Eastern Bay and the sea.The collection positions elevation as an integral part of the living experience, with the higher-floor homes designed around openness, changing skylines and wider city views. Rather than focusing only on floor height, the campaign highlights how elevated residences can offer a different perspective o..

Next Story
Real Estate

Villaro Design Studio Opens on MG Road in Delhi

Furniture designer Yuvraj Vohra has recently launched the new Villaro Design Studio on MG Road, Delhi, introducing a furniture brand built around an architectural approach to design, materiality and craftsmanship.Trained as an architect, Vohra approaches furniture as an integral part of the spatial experience rather than as standalone objects. Villaro's design philosophy focuses on proportion, material expression and the relationship between furniture and its surrounding architecture.The collection explores combinations of stone, marble, wood, metal and upholstery, with materials treated as st..

Next Story
Infrastructure Urban

India-Belgium Trade Shows Signs of Recovery in FY2026

India-Belgium economic relations are gaining renewed momentum following Belgian Prime Minister Bart De Wever’s three-day official visit to India from September 2–4, 2026. The visit, the first by a Belgian Prime Minister to India in two decades, focused on strengthening cooperation across trade, investment, defence, technology, connectivity and logistics.Belgium is an important European investment and trading partner for India, with cumulative foreign direct investment inflows of around $4.25 billion between April 2000 and March 2026. The country is a major European manufacturing, trade and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code