Congress-ruled Karnataka, Kerala, Telangana to challenge new mining law in Supreme Court
The states oppose the law because it stops state governments from imposing taxes or levies on mineral rights and mineral-bearing land.
Three Congress-controlled states – Karnataka, Kerala, and Telangana – plan to challenge a new mining law in the Supreme Court. This legislation was passed by both Houses of Parliament and received Presidential approval on August 18. The Congress party argues that the law infringes upon state financial interests and federalism principles.
The states' chief ministerial office announced the decision to challenge the law in the Supreme Court, with Congress general secretary for communications Jairam Ramesh confirming the petitions have been prepared.
The new law prohibits state governments from imposing levies on mineral rights or mineral-bearing lands, except as prescribed by the Central Government. It explicitly states that any such tax, cess, or levy not deposited with the State Government before the Act's commencement shall be deemed invalid. The law aims to counteract a 2024 Supreme Court ruling that permitted states to levy taxes on mineral rights.
The government contends that the new law eliminates regional fiscal disparities and ensures sustainable mineral development. They argue that uneven tax imposition among states increases transportation costs, reduces market development, and encourages imports despite local resources. Union mines minister G Kishen Reddy emphasized the law's intent to prevent tax burdens and unpredictability in tax applications, as well as its aim to provide uniformity in tax rates across states and eliminate retrospective taxation.
Karnataka deputy chief minister G Parameshwara expressed concerns over the law's impact on India's federal structure, questioning the state's ability to bear mining costs. He highlighted the unfair burden imposed on states that already bear significant responsibilities.
Written by urgent.news from Hindustan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
