India clears law to curb new state taxes on mining
India’s parliament on Thursday passed a bill that will restrict state governments from imposing new taxes, cesses or other levies on mineral rights and mineral-bearing lands unless permitted under conditions set by the federal government. The bill aims to create a uniform tax framework for the mining sector and address what the federal government described as an excessive and uneven fiscal burden…
India's parliament approved a new bill on Thursday that limits state governments' ability to impose additional taxes, levies, or fees on mining operations unless approved by the federal government. The bill aims to establish a uniform tax system for the mining industry and alleviate what the federal government described as excessive and uneven financial burdens on mining companies across different states.
Presently, the existing system has led to multiple taxes and levies, varying tax rates among states, and retrospective demands, creating uncertainty for mining firms and investors. The new law also grants the federal government regulatory oversight of mineral-bearing lands containing valuable mineral resources, expanding its control beyond existing authority in mine regulation and mineral development.
Furthermore, the legislation nullifies any unpaid or uncollected levies that states may have sought before the law takes effect.
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