Parliament passes Mines and Minerals Amendment Bill, 2026

Why in News?

Parliament on 13 August 2026 passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which seeks to regulate and restrict the power of State Governments to impose taxes, cess and other levies on mineral rights and mineral-bearing lands.

The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) and aims to establish a more uniform and predictable taxation framework for the mining sector.

Key Points

The amendment provides that the Union Government will also regulate mineral-bearing lands containing mineral deposits. Such lands will be identified according to parameters prescribed by the Central Government under the MMDR Act.

A new Section 9D has been inserted into the MMDR Act. It provides that no State Government shall impose any tax, cess or other levy on mineral rights or mineral-bearing lands, irrespective of the name under which such levy is imposed.

The restriction covers levies based on quantity of minerals, value of minerals, royalty or any other basis. Such levies can be imposed by State Governments only in accordance with the conditions or restrictions prescribed by the Central Government.

The amendment therefore seeks to establish a Centre-directed and uniform framework governing such State-level levies on mineral rights and mineral-bearing lands.

Any tax, cess or other levy that was not paid or collected by a State before the commencement of the amendment will be treated as invalid. However, amounts that had already been deposited or recovered before the amendment came into force will not be refunded.

The Bill also amends Section 13 of the MMDR Act to empower the Central Government to make rules prescribing the conditions and restrictions under which State Governments may impose such levies.

Challenges Addressed

The amendment seeks to address several concerns in the existing mining taxation framework, including the heavy tax burden on the mining sector and the uncertainty created by the introduction of new taxes, cess and other levies after mining operations have already commenced.

It also seeks to address the problem of multiple taxes and levies on mineral production or dispatch, as well as non-uniform taxation rates across States.

Another concern is the imposition of retrospective taxes, cess or other levies, which can increase uncertainty for mining companies and affect the predictability of investment.

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