GENERAL16 Sept 2026
Mining amendment is unfair to States
India's Mines and Minerals (Development and Regulation) Amendment Act, 2026 now limits State Governments from taxing mineral rights or mineral-bearing land, unless the Centre's conditions are met. The Centre says this brings predictable taxes and more mining investment. But mineral-rich States like Odisha, Jharkhand and Chhattisgarh argue they must keep a real share of the value from mining, since they handle displacement, environmental damage and infrastructure pressure.
Key Statutory Highlights
- Section 9D of the amendment restricts State Governments from imposing taxes, cesses or other levies on mineral rights or mineral-bearing land, except as per conditions set by the Central government.
- The Centre claims 90% of mining sector revenue accrues to the States and says this will continue.
- Mineral-rich States like Odisha, Jharkhand, Chhattisgarh and Karnataka carry resettlement, environmental damage and public infrastructure pressure, so they want a meaningful stake in the value generated.
Actionable Advice for Taxpayers / Founders:If your business depends on mining, minerals or State levies, follow how the Centre's prescribed conditions take shape before committing to long-term plans, and confirm with your CA or legal advisor which State charges still apply to you.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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