+
Karnataka Introduces Bill to Tax Mines and Mining Land
COAL & MINING

Karnataka Introduces Bill to Tax Mines and Mining Land

In response to a recent Supreme Court ruling allowing state governments to impose taxes on minerals, the Karnataka government presented the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill 2024 in the Assembly. This move is expected to generate over Rs 47 billion in additional revenue. Under the proposed legislation, tax will be payable by mining leaseholders at the time of dispatching minerals, with different tax rates applied based on the mine’s category. A uniform tax rate is suggested for mining leases within the same category, taking into account the current additional payments made by lessees. The Bill, which was cleared by the state cabinet earlier this month, comes after the Supreme Court’s August 2024 order permitting states to collect taxes on mineral-bearing land and mineral rights with retrospective effect from April 1, 2005. The ruling also waived interest and penalties on past dues before July 25, 2024. Leaseholders will be allowed to pay the taxes in installments over 12 years, starting from April 1, 2026. The Bill categorises mining leases into five groups based on the method of grant and additional payment conditions. These categories include leases granted through non-auction routes before 2015, those granted to public sector units before and after 2015, and those auctioned after 2015. The Bill also empowers the state government to set tax rates for mineral-bearing land and mineral rights, with retrospective implementation from 2005 and 2015, respectively. It includes provisions for mining companies to appeal tax determinations. According to the law, taxes will be paid by the leaseholder at the time of mineral dispatch, with a 12% simple interest charged on overdue payments. Of the total estimated revenue, Rs 42.07 billion is expected from mineral rights tax, and Rs 5.05 billion will be raised from taxes on mineral-bearing land. (Indian Express)

In response to a recent Supreme Court ruling allowing state governments to impose taxes on minerals, the Karnataka government presented the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill 2024 in the Assembly. This move is expected to generate over Rs 47 billion in additional revenue. Under the proposed legislation, tax will be payable by mining leaseholders at the time of dispatching minerals, with different tax rates applied based on the mine’s category. A uniform tax rate is suggested for mining leases within the same category, taking into account the current additional payments made by lessees. The Bill, which was cleared by the state cabinet earlier this month, comes after the Supreme Court’s August 2024 order permitting states to collect taxes on mineral-bearing land and mineral rights with retrospective effect from April 1, 2005. The ruling also waived interest and penalties on past dues before July 25, 2024. Leaseholders will be allowed to pay the taxes in installments over 12 years, starting from April 1, 2026. The Bill categorises mining leases into five groups based on the method of grant and additional payment conditions. These categories include leases granted through non-auction routes before 2015, those granted to public sector units before and after 2015, and those auctioned after 2015. The Bill also empowers the state government to set tax rates for mineral-bearing land and mineral rights, with retrospective implementation from 2005 and 2015, respectively. It includes provisions for mining companies to appeal tax determinations. According to the law, taxes will be paid by the leaseholder at the time of mineral dispatch, with a 12% simple interest charged on overdue payments. Of the total estimated revenue, Rs 42.07 billion is expected from mineral rights tax, and Rs 5.05 billion will be raised from taxes on mineral-bearing land. (Indian Express)

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code