The Tamil Nadu Legislative Assembly on Tuesday adopted a Bill that seeks to levy tax on mineral-bearing lands. While the Tamil Nadu government hoped to augment its revenue through this legislation, the Opposition parties contended that it would lead to an increase in the cost of construction materials. Minister Duraimurugan (holding minerals and mines portfolio) tabled the Bill in the House, which was eventually adopted following a voice vote.
The Supreme Court had earlier this year held that minerals-bearing land fell within the description of ‘lands’ under Entry 49 of List II of the Seventh Schedule of the Constitution and that the State Legislatures have legislative competence under Article 29 to tax on lands, which comprises of mines and quarries.
The Bill listed lignite, limestone, marl, magnesite, graphite, vermiculite, garnet, ilmenite, rutile, zircon, monazite, sillimanite and leicoxene as major minerals and lands bearing them were to be taxed. It also listed rough stone, gravel/earth, colour granite, black granite, pebbles, sand, quartz, feldspar, fireclay, ball clay, clay, kankar, silica sand, quartzite, calcite, dunite and dolomite as minor minerals and lands bearing them were to be taxed.
When the Bill was taken up for consideration, AIADMK’s Agri S.S. Krishnamurthy said the tax would affect the middle-class and those wanting to construct houses. PMK’s G.K. Mani, CPI (M)‘s V.P. Nagaimaali and legislator T. Velmurugan urged the government to reconsider the Bill.
Published – December 10, 2024 07:32 pm IST
