The Government of Tamil Nadu, on February 20, 2025, notified the Tamil Nadu Mineral Bearing Land Tax Act, 2024.
The Tamil Nadu Government proposes a tax called the "Mineral Bearing Land Tax" on lands bearing minerals listed in the Schedule. The tax will be assessed, collected, and managed by authorities of at least the rank of Assistant Director of Geology and Mining. Payment must be made in advance, with records maintained as prescribed.
Tax evasion or underpayment results in a 5% penalty, and unpaid taxes are recoverable as arrears of land revenue. Appeals against tax assessments can be made within 30 days, with a 30% pre-payment of disputed tax required. Revisions to orders can be sought from the government or authorized bodies.
Violations of tax-related provisions attract penalties up to ₹50,000. The government may amend the Schedule to add or alter mineral categories and tax rates, not exceeding a 50% increase. Additionally, the government can establish rules for tax management and enforcement.
The Act safeguards actions taken in good faith and provides mechanisms to address implementation difficulties within two years of commencement.
[ACT No. 9 of 2025]
