Supreme Court Verdict Empowers Jharkhand on Mineral Rights Taxation

The Supreme Court ruled that states, not Parliament, have the legislative power to tax mineral rights, benefiting mineral-rich states like Jharkhand. The ruling was welcomed by the JMM-Congress alliance. It allows states economic independence and potential growth in mineral wealth revenue. The Centre may impose limitations on this power.

The ruling JMM-Congress alliance in Jharkhand on Thursday welcomed the Supreme Court's verdict that affirmed the states' legislative power to tax mineral rights.

This landmark judgement is set to boost mineral-rich states like Jharkhand, according to a JMM leader. The court ruled that while states have the authority to impose taxes on mineral rights, the Parliament lacks such legislative competence under Entry 54 of List I of the Constitution.

With this pronouncement, Jharkhand sees new economic opportunities. JMM spokesperson Manoj Pandey expressed optimism, highlighting the state's longstanding contribution to the country's economy via its mineral wealth. However, he also noted the challenges Jharkhand faces, including displacement and environmental damage from mining activities with little local benefit. The verdict promises economic growth and less reliance on central government funds.