India: Jharkhand Assembly passes landmark bill imposing cess on mined minerals

The Jharkhand Assembly has made a significant move to increase state revenue by passing the 'Jharkhand Mineral-Bearing Land Cess Bill 2024'. This new legislation aims to levy a cess on mined minerals, capitalising on the state's rich mineral resources. The bill was introduced by the Mining Minister in charge, Mithilesh Thakur, and was passed by voice vote in the assembly on Friday. Though BigMint is yet to receive the bill copy, however, sources indicate that the news stands true.

The Supreme Court recently ruled that the legislative power to tax mineral rights rests with the states, paving the way for this crucial legislative development. The bill proposes varying tax rates on a per tonne basis: INR 100 for coal and iron ore, INR 70 for bauxite, and INR 50 for manganese ore and other minerals.

Chief Minister Hemant Soren proposed an amendment to allow the state government the flexibility to amend prices through notifications, reflecting changes over time.

Minister Thakur emphasised the bill's significance, highlighting that despite Jharkhand contributing 40% of India's mineral resources, the state remains underdeveloped. He assured that the concerns raised had been addressed and that the bill had undergone review by relevant departments.

This development is expected to have a substantial impact on Jharkhand's economy, boosting the state's revenue and potentially contributing to the socio-economic welfare of its residents.