Tamil Nadu shifts to metric tonne-based mining tax for greater accuracy

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The Tamil Nadu government has officially notified the Tamil Nadu Mineral Bearing Land Tax Rules, 2025, under the Tamil Nadu Mineral Bearing Land Tax Act, 2024 (Tamil Nadu Act 9 of 2025).

A key change in the new regulations is the shift from a volume-based tax system, which measured extracted minerals in cubic meters, to a weight-based system that calculates taxes using metric tonnes.

“We are transitioning from a cubic meter-based levy to a metric tonne-based levy, which offers better accuracy and ease of measurement,” a senior government official told businessline.

The State government’s revenue from mineral concessions has risen from ₹1,212.87 crore in financial year 2021-2022 to ₹1,704.14 crore in FY2024-25. As of February 2025, it has collected ₹434 crore (FY25) from the production of 409 lakh tonnes of major minerals, with limestone and lignite contributing the largest share. Additionally, ₹578 crore has been generated from 618 lakh tonnes of minor minerals, with rough stone accounting for a significant portion, according to 2025-26 Policy Note of the Natural Resources Department.

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Published on April 4, 2025



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