K'taka Guv returns bill on mineral tax, seeks clarification from Govt

Bengaluru: Karnataka Governor Thawar Chand Gehlot has returned a bill proposing a slew of taxes on mineral rights and mineral-bearing land to the government without assenting it, amid growing resistance to the levies from the mining industry and Union minister HD Kumaraswamy.

Sources in the government confirmed the development to the ET, saying the governor has sought some clarifications. The Congress regime is deliberating on how to respond to the governor's query - whether to send an official reply or explore legal options.

The Karnataka Legislature passed the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024, last month. The Raj Bhavan's action comes amid Kumaraswamy's public criticism of the bill suggesting that it would defeat PM Narendra Modi's vision for the steel sector.


The Supreme Court had, on August 14, 2024, ruled that states can collect mineral taxes on mineral-bearing land and mineral rights with retrospective effect from April 1, 2005.