India defends mining tax curbs as Jharkhand warns of revenue hit

India's federal government has defended a new mining bill by arguing that uneven state taxes on mineral rights and mineral-bearing lands raise domestic costs, fragment the national market and encourage unnecessary imports. Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill on Thursday, restricting states from imposing new taxes, cesses or other levies unless permitted under federal conditions, while the government said states would still retain rights over land, minerals and mineral taxes and continue to receive about 90% of mining-related taxes and payments. The measure has drawn protests from opposition parties and a direct appeal from Jharkhand Chief Minister Hemant Soren, who said mining revenue accounted for 84.9% of the state's non-tax revenue in fiscal 2024-25, that the Mineral Bearing Land Cess was expected to generate about 71.1 billion rupees ($744.97 million) a year, and that curbs could undermine development, welfare and social-security spending while aggravating social tensions in mining-affected communities.

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