Avenues for revenues: Tax, penalty on minerals to shore up treasury

THE state government, that has allocated a whopping Rs 56,000 crore in the budget for the five guarantee schemes, has opened up new avenues to generate additional revenue by introducing a new tax on mineral-bearing lands, in addition to royalty.

- EXPRESS NEWS SERVICE @ Bengaluru

The Cabinet on Friday decided to place the Karnataka (Mineral Rights and Mineral Bearing Land) Tax bill, 2024, in the upcoming winter session in Belagavi. If it becomes law, the holder of mining lease pays tax based on the quantity of mineral lifted from the lands. The tax ranges from Rs 20 per tonne (for limestone) to Rs 100 for iron ore, including calibrated lump ore (CLO), lump ore, fines, and concentrates of all grades. Annually, the state proposes to get additional revenue of Rs 4,700 crore.