Karnataka's Mineral Rights Tax Bill Faces Presidential Review

The Karnataka Mineral Rights and Mineral Bearing Land Tax Bill, reserved for President Draupadi Murmu's assent, proposes retrospective taxation on mineral rights. Passed in December's legislative session, it aims to generate Rs 4,713 crore. Governor Gehlot expressed concerns about constitutional transgressions and impacts on central acts and state interests.

Karnataka's Mineral Rights and Mineral Bearing Land Tax Bill has been sent to President Draupadi Murmu for assent, following Governor Thaawarchand Gehlot's concerns over its constitutional violations and potential adverse impacts on other states.

The Bill, passed in December, allows the government to tax mineral rights and owners retrospectively from April 1, 2005, expected to generate Rs 4,713 crore. It levies a tax ranging from Rs 20 to Rs 100 per tonne of minerals.

Governor Gehlot highlighted that the Bill might encroach on areas covered by federal laws like the Environmental Protection Act. He stressed that the legislation aims to enrich the state excessively and might infringe on previously established parliamentary statutes.

(With inputs from agencies.)