Mint Explainer | Why Centre does not want states to tax minerals

What is the new Bill about?

The Centre is amending the Mines and Minerals (Development and Regulation) Act, 1957, by introducing a new section, 9D, which specifically prohibits states from imposing any levies on mined minerals. It states “no tax, cess or such other levy (by whatever name called) shall be imposed by the state government on mineral rights; or mineral bearing lands, either based on mineral quantity, mineral value, royalty or otherwise, except in accordance with such conditions or restrictions as may be prescribed by the Central Government”.