Odisha to Study Landmark SC Verdict on Mineral Tax Rights

Odisha's Steel and Mines Minister Bibhuti Bhusan Jena announced that the state will study the Supreme Court's ruling which grants states the power to tax mineral rights. The judgement is anticipated to significantly boost revenues for mineral-rich states. Mining officials and experts await the judgement copy before commenting further.

The Odisha government is set to examine the Supreme Court's recent verdict which asserts that the legislative power to tax mineral rights lies with the states, according to a minister's statement.

Steel and Mines Minister Bibhuti Bhusan Jena noted on Thursday that the state is yet to receive a copy of the judgement. He indicated that the judgement has the potential to provide a substantial revenue increase for mineral-rich states. “We have not seen the judgement copy. Let it come and we will study it. The state will examine the verdict on mines and mineral tax,” Jena mentioned to PTI on the assembly premises.

Nonetheless, officials from the state Steel and Mines Department abstained from commenting on the Supreme Court's decision, perceived as a setback to the BJP-led central government. Steel and Mines Secretary DK Singh did not respond to calls. Mines Director Rajesh Gopalan stated, “We have not received the copy of the judgement. Let us see the judgement copy before making any comment.”

The Supreme Court declared that the legislative power to tax mineral rights resides with the states and clarified that the royalty paid on minerals does not equate to a tax. Headed by Chief Justice D Y Chandrachud, a nine-judge constitution bench delivered an 8:1 majority verdict concluding that Parliament lacks the authority to tax mineral rights under Entry 54 of List I of the Constitution, which concerns the regulation of mines and mineral development by the Centre. However, the ruling acknowledged that Parliament retains the power to legislate limitations on states' ability to levy such taxes.

Opposition party Biju Janata Dal (BJD), which had long sought state rights in the mines and mineral sector, scheduled a press conference on Friday to discuss the SC verdict. Mining sector leaders praised the judgement, anticipating that it would enhance the economic prospects of mineral-rich states like Odisha.