T’puram: Chief minister V D Satheesan has written to Prime Minister Narendra Modi seeking a review of the provisions in Mines and Minerals (Development and Regulation) Amendment Bill passed by Parliament, saying they would limit the constitutional and fiscal powers of states.Satheesan said the proposed Section 9D, which makes the power to impose tax, cess and other levies on mineral-bearing land subject to the criteria prescribed by Centre, would affect the constitutional powers of states. The bill contains provisions to bring land containing mineral deposits under Centre’s control and to extinguish arrears of state taxes, he said. Satheesan said the amendments would have an impact on Kerala, which has significant mineral deposits.He said restricting the state’s fiscal powers over mineral-bearing land would adversely affect its revenue as well as the tax revenue of local self-government institutions. He sought the PM’s urgent intervention on the concerns raised by Kerala.In his letter, Satheesan also referred to the apex court’s 2024 judgment, which held that royalty on mining rights is not a tax. He said states have the power to levy tax on mineral rights under entry 50 of List-II of the Seventh Schedule of the Constitution. SC had also upheld the power of states under entry 49 to levy taxes on land containing mineral deposits based on the quantity or value of mineral production, he added.
