States Win Right to Levy Higher Mining Royalty

The Supreme Court today overturned its 1989 judgment, empowering states to impose higher taxes on mining activities. The court upheld the right of state governments to levy royalty on mining land, with an 8-member bench supporting the ruling.

Chief Justice stated that the royalty tax is not uniform, paving the way for states to charge varying rates. This verdict is expected to benefit six mineral-rich states, including Odisha, which can now increase their revenue through higher royalty taxes.

The Supreme Court’s decision is seen as a significant victory for state governments, which can now exercise greater control over mining activities within their jurisdictions. The ruling is likely to have far-reaching implications for the mining industry, with states expected to reap increased revenue from royalty taxes.

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