Under the new tax structure, the highest rate has been fixed at ₹7,000 per metric ton for Sillimanite, while the lowest is ₹40 per metric ton for clay minerals, said an official statement.
| Photo Credit:
MOORTHY M
The Tamil Nadu government is expected to generate an estimated additional revenue of ₹2,400 crore annually following the introduction of a new tax on mineral-bearing land.
This move comes as part of the implementation of the Tamil Nadu Mineral Bearing Land Tax Act, 2024, and the corresponding Rules, 2025, which came into effect on April 4.
Currently, leaseholders of major minerals are required to make statutory payments to the government, including Royalty, District Mineral Foundation Trust (DMFT) contributions, and National Mineral Exploration Trust (NMET) charges for the mining and transportation of minerals. Similarly, leaseholders of minor minerals remit payments such as Seigniorage Fee, DMFT contributions, and Green Fund charges for quarrying and transporting activities.
In addition to these existing obligations, leaseholders of both major and minor minerals will now be liable to pay the newly introduced mineral-bearing land tax starting from April 4, 2025, in accordance with the Tamil Nadu Mineral Bearing Land Tax Rules, 2025.
New tax structure
Under the new tax structure, the highest rate has been fixed at ₹7,000 per metric ton for Sillimanite, while the lowest is ₹40 per metric ton for clay minerals, said an official statement.
The Tamil Nadu Mineral Bearing Land Tax Act, 2024, was enacted and published in the Government Gazette No. 79 on February 20, 2025. Subsequently, the Tamil Nadu Mineral Bearing Land Tax Rules, 202,5 were framed under Section 10 of the Act and published in Gazette No. 155 dated April 4, 2025.
Published on April 7, 2025
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