The Karnataka Governor Thawar Chand Gehlot has returned the Mineral Tax Bill, according to news reports. The Governor cited queries raised by mining associations as the reason for his decision.
Commenting on the development, Congress spokesperson, BL Shankar stated, “This Bill was introduced in the interest of the community. Both parties have already agreed to it. However, the Governor has raised certain queries and sent the bill back for further clarification.”
The Bill, which was passed by the Cabinet in December 2024, proposes provisions to levy a tax ranging from ₹20 to ₹100 per tonne for different minerals. The proposed tax per tonne is ₹100 for bauxite, laterite, manganese, and iron ore mineral-bearing land, ₹50 for copper ore, ₹20 for limeshell, ₹50 for byproducts of gold, and ₹40 for all other unspecified minerals.
This tax provision is projected to generate ₹4,207.95 crore in revenue, with an additional ₹505.9 crore expected from taxing land-bearing minerals annually.
Addressing the situation, VS Ugrappa, Former Member of the Lok Sabha and senior Congress leader, told businessline, “Bills traditionally go through a convention before being passed. They are usually discussed either within the party or in the legislature. That convention seems to be missing in this case.
Any Bill passed by the legislature undergoes a discussion on the floor of both houses. If such a bill has been passed by both houses either by majority or unanimously it is clear that the bill aligns with the provisions of the Constitution. Such Bills are typically brought by the government in the interest of the State.” Previously, 11 bills have been returned, which could hamper the development of the State, he noted.
