Lok Sabha passes bill restricting states’ power to tax minerals amid protests
The bill, which amends the Mines and Minerals (development and regulation) Act, 1957, was introduced on Monday by minister of coal and mines G Kishan Reddy.
The Lok Sabha passed the Mines and Minerals (development and regulation) Amendment Bill, 2026 on Wednesday without a debate. The bill aims to prevent state governments from imposing taxes, cesses, or levies on minerals rights and mineral-bearing lands. Introduced by Coal and Mines Minister G Kishan Reddy on Monday, the amendment bill was passed amidst opposition protests.
The bill introduces a new section that prohibits the state government from imposing taxes on mineral rights or mineral-bearing lands, except under conditions prescribed by the Central Government. It also expands the central government's power to regulate mines on mineral-bearing lands with ore content. The proposed amendments come in response to a July 2024 Supreme Court ruling that upheld states' power to levy taxes on minerals.
The bill clarifies that any tax, cess, or levy not deposited with the state before the amendment's commencement will be deemed invalid, but those already deposited will not be refunded. Critics, including PMK chief Anbumani Ramadoss, have urged the Centre to withdraw the bill, arguing it infringes on state taxation rights. This update brings you the key facts surrounding the passage of this controversial bill in the Lok Sabha.
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