Sun Mar 16 23:50:00 UTC 2025: ## Tamil Nadu to Rake in Billions from New Mineral Tax

**Chennai, March 17, 2025** – Tamil Nadu is poised to significantly boost its revenue through a newly implemented Mineral Bearing Land Tax Act, projected to generate ₹3,450 crore in 2025-26. This follows a Supreme Court ruling last year affirming the state’s right to levy taxes on mines and minerals.

The Act, which received gubernatorial assent in February, establishes tax rates for various minerals, ranging from ₹40 per tonne for clay to ₹7,000 per tonne for sillimanite. Crude oil and natural gas are also subject to the tax. The state’s revenue from non-ferrous mining and metallurgical industries is already estimated at ₹1,545 crore this year, projected to rise to ₹4,980 crore.

While the new tax is expected to significantly increase state revenue, some cement manufacturers have voiced concerns, arguing that the added cost will be passed on to consumers. The Supreme Court’s July 2024 decision clarified that the existing royalty paid to states is distinct from this new tax, upholding the state’s legislative power to tax mining lands and quarries.

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