Lok Sabha Passes Bill Restricting State Mineral Taxes

The Lok Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill 2026 on August 12, 2026, via a voice vote without debate. Introduced by G Kishan Reddy, the Minister of Coal and Mines, the legislation prohibits state governments from imposing additional taxes, cesses, or other charges on mineral-bearing lands and mineral rights.

Under the new law, the central government assumes control over the regulation of these lands based on prescribed parameters. Minister Reddy argued that the amendments are necessary to ensure fiscal stability and predictability to support the national goal of a "Viksit Bharat by 2047." He stated that uneven state taxes increase costs for citizens and could lead to an increase in mineral imports despite sufficient local resources.

Opposition leader N K Premachandran challenged the legislation, asserting that the central government's move to restrict state taxing authority violates the principles of federalism.