The government of the eastern Indian state of Jharkhand has approved hikes in cess on coal and iron ore, a government official said on Tuesday, March 18.
The official said that the state cabinet of ministers has approved increasing cess on coal to INR 250/mt ($3/mt) from INR 100/mt (1.14/mt) at present.
Cess on iron ore will be hiked to INR 400/mt ($4.59/mt) from INR 100/mt ($1.14/mt) at present.
The official said that cess has been increased to fund the large number of social security schemes launched by the state government.
It may be noted that in July 2024 India’s Supreme Court in a verdict clarified that royalties received by the federal government in lieu of tax on mining activities conducted in a state could not be classified as a ‘tax’.
The verdict also empowered states to levy tax on mining activities conducted within their state boundaries, thereby ending a three-decade-long dispute between the state governments and the federal government.