THIRUVANANTHAPURAM: Chief Minister V D Satheesan has written to Prime Minister Narendra Modi, urging him to review the clauses of the Mines and Minerals (Development and Regulation) Amendment Bill (MMDR) passed by the parliament.
Satheesan said imposing the conditions laid down by the Centre to decide the tax, cess and other levies for the mineral-rich land under Section 9D of the amendment will affect the constitutional powers of the states.
The bill also has sections that envisage bringing the mineral-rich land under the Union government’s control and deny states the right to collect pending taxes. Satheesan pointed out that the bill will have severe consequences as curtailing the financial powers of the state over the mineral-rich land will affect its revenue receipt.
Satheesan also drew the prime minister’s attention to a 2024 Supreme Court verdict which ruled that royalty on mining rights was not akin to tax.
As per the Constitution, the states are empowered to levy taxes on mining rights. The apex court had ruled in favour of the state governments’ right to levy tax on the basis of their production quantity or value, the CM explained.
