CHENNAI: With the introduction of Mineral Bearing Land Tax (MBLT) for mineral excavation, the state government is eyeing to generate additional revenue of approximately Rs 2,400 crore annually starting this year.
In an official statement on Monday, E Saravanavelraj, Commissioner of Geology and Mining, said the tax rates had been fixed for 32 minerals under the Tamil Nadu Mineral Bearing Land Tax Act, 2024. “Leaseholders of both major and minor minerals must pay the tax from April 4. The highest tax rate is Rs 7,000 per tonne for sillimanite, while the lowest is Rs 40 per tonne for clay minerals,” he said.
The MBLT was introduced primarily to curb unchecked and illegal exploitation of natural resources. While mining minerals like sillimanite, limestone, lignite, granite and garnet sand generate substantial revenue for private companies, the government earns significantly less through royalties and other fees.
Additionally, mineral extraction causes severe ecological damage, including deforestation, groundwater depletion and soil degradation. The MBLT seeks to incorporate environmental costs into the economic framework of mining.
Currently, leaseholders of major minerals pay statutory fees to the government, including royalties, District Mineral Foundation Trust (DMFT) contributions and National Mineral Exploration Trust (NMET) funds, for mining and transportation. Similarly, minor mineral leaseholders remit payments such as seigniorage fees, DMFT contributions, and green fund fees for quarrying and transportation.
Additional revenue
Leaseholders of major, minor minerals must pay tax from April 4
It seeks to incorporate environmental costs into economic framework of mining
Highest tax rate is Rs 7,000 per tonne for sillimanite, lowest is Rs 40 per tonne for clay minerals