Odisha CM Charan Majhi
Credit: PTI Photo
Bhubaneswar: The Odisha government will study the supreme court's verdict that said the legislative power to tax mineral rights vests with the states, according to a minister.
Odisha’s Steel and Mines Minister Bibhuti Bhusan Jena on Thursday said the government is waiting for a copy of the judgement, which is considered to give a huge revenue boost to mineral-rich states.
“We have not seen the judgement copy. Let it come and we will study. The state will examine the verdict on mines and mineral tax,” Jena told PTI on the assembly premises.
However, state Steel and Mines Department officials refused to comment on the Supreme Court verdict, which is seen as a setback to the BJP-led central government.
Steel and Mines Secretary DK Singh did not respond to phone calls.
Mines Director Rajesh Gopalan said, “We have not received the copy of the judgement. Let us see the judgement copy before making any comment.” The legislative power to tax mineral rights vests with the states and the royalty paid on minerals is not a tax, the Supreme Court ruled on Thursday.
A nine-judge constitution bench headed by Chief Justice D Y Chandrachud, in a majority 8:1 verdict, said Parliament does not have the legislative competence to tax mineral rights under Entry 54 of List I of the Constitution which pertains to regulation of mines and mineral development by the Centre.
The pronouncement, however, said that Parliament can still legislate to impose "any limitations" on states' power to levy tax on mineral rights.
The opposition Biju Janata Dal (BJD), which had been demanding the rights of the states in the mines and mineral sector, decided to hold a press conference on the SC verdict on Friday.
Some leading mining company executives welcomed the SC verdict.
Mining experts observed that the judgement will give a boost to mineral-rich states like Odisha.