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 on miners across states.
The current system had led to multiple taxes and levies, differing tax rates among states, and retrospective demands that created uncertainty for mining companies and investors, the federal government said.
Under the law, the federal government will also gain regulatory oversight of mineral-bearing lands containing mineral resources, expanding its role beyond the existing control over mine regulation and mineral development.
The legislation invalidates unpaid or uncollected levies that states may have sought before the law comes into force.
(Reporting by Mridula Kumar in Bengaluru; Editing by Mrigank Dhaniwala)
