Mines Bill Sparks State-Centre Row

Centre's Move to Bar States from Levying Tax

The Centre has proposed to bar states from levying tax, cess on mineral rights and mineral-rich land, sparking opposition from states. The move is part of the Mines and Minerals Amendment Bill, which has been passed by the Rajya Sabha.

According to reports, the bill aims to curb the power of states to levy taxes on minerals, with the Centre arguing that it is necessary to simplify the tax regime and attract investment in the mining sector. However, states have objected to the move, citing potential loss of revenue.

States' Objection to the Bill

States such as Jharkhand have strongly objected to the bill, with Chief Minister stating that minerals and land belong to the state. The opposition is not limited to Jharkhand, with other states also expressing concerns about the potential impact on their revenue.

The retrospective application of the bill has also been questioned, with some arguing that it may be unconstitutional. The issue is likely to be challenged in court, with states seeking to protect their rights over mineral-rich land.

Implications of the Bill

The passage of the bill has significant implications for the mining sector, with potential impact on investment and revenue generation. While the Centre argues that the move will simplify the tax regime and attract investment, states are concerned about the potential loss of revenue.

What's Next

The bill will now be sent to the Lok Sabha for approval. If passed, it will become a law, paving the way for the Centre to take control of mineral rights and mineral-rich land. The opposition from states is likely to continue, with potential legal challenges to the bill.

• States will continue to oppose the bill, citing potential loss of revenue
• The Centre will push for the bill to be passed in the Lok Sabha
• Potential legal challenges to the bill are expected