Tamil Nadu Introduces Landmark Mining Taxation Framework
Tamil Nadu Enacts Mineral Land Tax Law 2024 to Boost Mining Revenue Oversight: In a move to strengthen oversight over mining activities, the Tamil Nadu Legislative Assembly passed the Tamil Nadu Mineral Bearing Land Tax Act, 2024, on February 20, 2025. The Act was officially published in the state gazette on the same day. This law is designed to streamline how revenue is collected from lands used for mineral extraction, ensuring that both landowners and mining leaseholders contribute a fair share towards state income. It is a strategic initiative to improve resource management and fiscal transparency in the mining sector.
Per-Tonne Tax on Limestone and Other Minerals
Under the new law, a mineral-bearing land tax has been introduced, with limestone extraction specifically taxed at ₹160 per metric tonne. This direct taxation method is expected to significantly enhance revenue from districts with active mining operations. The fixed per-tonne model also enables accurate tracking of mineral production, helping authorities to better enforce tax compliance. It reflects Tamil Nadu’s alignment with national mineral development goals by promoting a transparent taxation system.
Implementation Guidelines Await Government Notification
Although the Act is now in effect, the operational rules for its enforcement are yet to be issued. The Tamil Nadu government is expected to outline procedures for levying, assessing, collecting, and remitting the tax. These upcoming regulations will also cover record maintenance, audit protocols, and penalty structures for violations. The success of this law will depend on the clarity and efficiency of these implementation rules across the state’s mineral-producing regions.
STATIC GK SNAPSHOT
Tamil Nadu Enacts Mineral Land Tax Law 2024 to Boost Mining Revenue Oversight:
| Aspect | Details |
| Name of the Act | Tamil Nadu Mineral Bearing Land Tax Act, 2024 |
| Gazette Notification Date | February 20, 2025 |
| Tax Rate | ₹160 per metric tonne on limestone |
| Objective | To regulate and collect tax from mineral-bearing lands |
| Enforcement Status | Awaiting notification of implementation rules |
| Pending Provisions | Details on assessment, levy, payment, and collection |
| Authority Responsible | Tamil Nadu Legislative Assembly |
