This will affect the future of mining unless the government brings in legislation to revoke this ruling: RK Sharma | Representative image
India’s Supreme Court order allowing states to collect back taxes from mining companies will have a major financial impact on these firms and affect investments, a senior mines ministry official told Reuters on Wednesday, declining to be named.
India’s Supreme Court on Wednesday allowed state governments to collect taxes from mining companies that they owe back to April 1, 2005.
The deadline for payment or demand of the tax will be spread over a period of 12 years, starting on April 1, 2026, the Supreme Court said.
“This will affect the future of mining unless the government brings in legislation to overturn this ruling,” said RK Sharma, general secretary of the Federation of Indian Mineral Industries.
The order triggered a 2.4 per cent drop in India’s metals index, with JSW Steel, Tata Steel and NMDC falling between 2 per cent and 5.5 per cent.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 14, 2024 | 1:40 PM IS
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