Tamil Nadu expects ₹3,450 crore from new tax law

Tamil Nadu has enacted the Mineral Bearing Land Tax Act, approved by Governor R.N. Ravi on February 20, 2025. This law allows the state to levy taxes on mines and minerals, following a Supreme Court ruling last year. The state expects to collect about ₹3,450 crore in the 2025-26 fiscal year from this tax. This is a significant increase from the projected ₹1,545 crore in the current year, with total revenue from non-ferrous mining expected to reach ₹4,980 crore. The law sets specific tax rates for various minerals, including ₹250 per tonne for lignite and up to ₹7,000 per tonne for sillimanite. Some cement manufacturers have raised concerns that the tax may increase their costs, which could be passed on to consumers.