BENGALURU: The state government, that has allocated a whopping Rs 56,000 crore in the budget for the five guarantee schemes, has opened up new avenues to generate additional revenue by introducing a new tax on mineral bearing lands, in addition to royalty.
The Cabinet on Friday decided to place the Karnataka (Mineral Rights and Mineral Bearing Land) Tax bill, 2024, in the upcoming winter session in Belagavi. If it becomes law, the holder of mining lease pays tax based on the quantity of mineral lifted from the lands. The tax ranges from Rs 20 per tonne (for limeshell) to Rs 100 for iron ore, including calibrated lump ore (CLO), lump ore, fines, and concentrates of all grades. Annually, the state proposes to get additional revenue of Rs 4,700 crore.
It is in accordance with the Supreme Court’s verdict on July 25, 2024, that legislative power to tax mineral rights vests with the states, informed Law and Parliamentary Affairs Minister HK Patil. “The verdict overruled a 1989 judgement which held that only the Centre imposes royalty on minerals and mineral bearing lands, and that Parliament’s Mines and Minerals (Development and Regulation) Act of 1957 does not limit this power,” he pointed out. It has also been decided to bring in the Karnataka Minor Mineral Concession (Amendment) Rules, 2024, to increase royalty from the existing Rs 70 per tonne to Rs 80 per tonne, which means additional revenue of Rs 301 crore for the state’s exchequer.
The Cabinet decided to go with one time settlement (OTS) with regard to the 2,438 stone quarries which had dues of Rs 1,221 crore royalty they had evaded by violating rules, including encroachment, and penalty imposed at five times at Rs 6,105 crore for six years of delay.
“Differential GPS drone survey in 11 districts has scientifically proven that the miners have violated rules, and as the survey remains in 20 more districts, the collection of penalties may increase. The OTS amount may vary if miners negotiate,” Patil remarked.
“We are generating additional revenue not to be adjusted for guarantees but to implement more development works,” Patil replied to a query.
Getting birth, death certificates now easy: The Cabinet has approved the Karnataka Registration of Births and Deaths (Amendment) Rules, 2024. The people, especially farmers, need not approach courts for a decree even if they fail to get certificates within a year of either the birth or death of family members.