Fri Dec 06 14:48:00 UTC 2024: ## Karnataka to Implement New Mineral Tax, Aiming for Billions in Revenue

**Bengaluru, December 6, 2024** – The Karnataka state cabinet approved a new tax on mineral rights and mineral-bearing land, aiming to generate significant revenue for the state. The Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024, will be presented to the state legislature during its winter session beginning December 9th in Belagavi.

The bill proposes a tiered tax system, ranging from ₹20 to ₹100 per tonne of different minerals. Bauxite, laterite, manganese, and iron ore will be taxed at the highest rate of ₹100 per tonne, while other minerals will fall under a lower bracket. The government anticipates annual revenue of ₹4,207.95 crore from this tax, with an additional ₹505.9 crore from taxes on mineral-bearing land.

This move follows a July 2024 Supreme Court ruling that affirmed the state’s right to levy such taxes, overturning a previous judgment. The court also allowed for retrospective taxation from April 1, 2005.

Law and Parliamentary Affairs Minister H.K. Patil explained that the tax rates will vary based on five categories of mining leases, considering existing additional payments by lessees. The government also approved new rules for minor minerals, increasing royalty from ₹70 to ₹80 per tonne, expecting an additional ₹311.55 crore in revenue.

Furthermore, a one-time settlement (OTS) has been approved to collect outstanding royalty and penalties from 2,438 unauthorized stone crushers, estimated at ₹1,221 crore in royalty and ₹6,105.98 crore in penalties. Surveys using differential global positioning systems have been conducted in 11 districts, with 20 more districts pending.

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