Can State Legislatures levy tax on mines and quarries despite the MMDR Act limitations as per the recent Supreme Court ruling
The Supreme Court clarifies that State Legislatures' power to tax mines and quarries is not restricted by Parliament's MMDR Act, emphasizing that royalty is distinct from tax.
- The recent Supreme Court ruling confirms that State Legislatures can levy taxes on mines and quarries
- The ruling emphasizes that this power is not restricted by the Mines and Minerals (Development and Regulation) Act (MMDR Act) enacted by Parliament
- The court explains that royalty payments made by mining companies are distinct from taxes imposed by State Legislatures
- This decision clarifies the scope of State Legislatures' authority in taxing mining activities, providing them with more autonomy in revenue generation
- It underscores the importance of recognizing the separate nature of royalties and taxes when regulating the mining sector
Answered
9 months ago