Supreme Court Ruling Empowering States to Tax Mineral Rights Garners Support

Opposition parties have welcomed the Supreme Court's decision affirming state legislatures' authority to tax mineral rights. This landmark ruling benefits mineral-rich states like Jharkhand and Odisha by enabling them to levy taxes on minerals and reclaim revenues. The judgment addresses concerns about tax revenue monopolization by the Centre.

Opposition parties on Thursday welcomed the Supreme Court's decision upholding the state legislature's power to tax mineral rights. They believe the ruling will significantly benefit mineral-rich states.

Reacting to the judgment, Congress MP Shashi Tharoor highlighted that this decision enables state governments to impose taxes on mining activities. Tharoor noted that states like Jharkhand, rich in minerals, would greatly benefit from the increased revenue streams.

BJD leader Sasmit Patra echoed similar sentiments, emphasizing that mining states face pollution issues and should have the right to levy taxes. He mentioned that Odisha's former chief minister Naveen Patnaik advocated for a 'green tax' to address environmental concerns arising from mining. Patra added that the ruling will allow states to revise coal royalties and support local economies.

The Supreme Court clarified that royalty on minerals is not a tax, granting states legislative competence to impose taxes on mines and mineral-bearing lands. This verdict is expected to boost revenues for states like Jharkhand and Odisha, as they can now recover taxes worth thousands of crores previously levied by the Centre.