Bill restricts States' power to tax mineral rights, cites fiscal burden as reason

It seeks to restrict State Governments' power to impose taxes and levies on mineral rights and mineral-bearing lands, aiming to create a uniform fiscal framework for the mining sector.

Who it concerns: State Governments, the Central Government, mining industry operators, and citizens affected by mineral costs.

What the document says

• Inserts a new Section 9D into the Mines and Minerals (Development and Regulation) Act, 1957.
• Prohibits State Governments from imposing any tax, cess, or other levy on mineral rights or mineral-bearing lands (based on quantity, value, royalty, or otherwise) except in accordance with conditions prescribed by the Central Government.
• Declares any such tax or levy not deposited with or recovered by the State Government before the Bill's commencement as invalid at all material times.
• Specifies that taxes or levies already deposited or recovered before the Bill's commencement are not liable to be refunded.
• Amends Section 2 to include 'mineral bearing lands' under Union control for regulation.
• Amends Section 13 to empower the Central Government to make rules prescribing conditions for State taxes on minerals.

Also in the document

• The Statement of Objects and Reasons cites issues such as heavy tax burdens, unpredictable introduction of levies, non-uniformity of rates among States, and retrospective imposition of taxes as reasons for the Bill.
• The Bill states that excessive fiscal burden can lead to mine closures, increased imports, and higher costs of goods and services for citizens.
• The Financial Memorandum states that the Bill, if enacted, would not involve any expenditure from the Consolidated Fund of India.
• A corrigendum dated August 08, 2026, corrects a typo in the text regarding the imposition of tax.