‘Mineral bearing land tax to fetch ₹2,400 crore annually’

The Commissioner of Geology and Mining on Monday said the Exchequer of the State government will fetch an additional revenue of approximately ₹2,400 crore per annum by way of levy and collection of mineral bearing land tax.

The Government of Tamil Nadu enacted a new Act called “the Tamil Nadu Mineral Bearing Land Tax Act, 2024” for levy and collection of tax on mineral bearing land, and published it vide Government Gazette dated February 20, according to a release.

Subsequently, Under section 10 of the Act, it framed “the Tamil Nadu Mineral Bearing Land Tax Rules, 2025” and published it in the Government Gazette dated April 4.

As per the Act and Rules, the rate of mineral bearing land tax has been fixed for 32 minerals, it added.

The leaseholders of both major and minor minerals shall pay the mineral bearing land tax from April 4, as per the new rules.

The highest tax amount is ₹7,000 per tonne for Sillimanite, and the lowest tax is ₹40 per tonne for clay minerals, the release noted.

The leaseholders of both major and minor minerals shall pay mineral bearing land tax in addition to other statutory payments made to the government, it said.