Rs 1 trillion at stake in mineral tax tussle between Centre and states

As Centre and states contest the issue of taxation rights in court, CAGR of revenue from coal stands at 13.8% during 2014-23

The contentious issue of taxation rights on minerals has brought the Centre and mineral-rich states at loggerheads. The Supreme Court is currently hearing a case to ascertain whether states can impose taxes on mineral-bearing land, a proposition vehemently contested by the central government.

At stake is revenue from mining, and data on royalties garnered by states for major minerals during a five-year period crossed Rs 1 trillion (see chart).

The Centre has argued that the royalty fixed under the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957, gives uniformity in taxes for all states, and granting states unrestricted taxing