Governor sends Karnataka Tax Bill for President's assent

Bengaluru, Mar 28 (PTI) The Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill was reserved for the assent of President Draupadi Murmu by Governor Thaawarchand Gehlot on Friday.

The Governor has stated that the proposed legislation would "transgress" constitutional limitations and provisions, and also "adversely affect" legitimate interest of other state or its people.

The Bill allows the government to levy taxes, with retrospective effect, on mineral rights and owners of mineral-bearing lands. It was passed during the Belagavi session of the legislature in December.

The proposed legislation is estimated to bring a revenue of Rs 4,713 crore.

The Bill proposes to levy a tax from Rs 20 to Rs 100 per tonne for different minerals.

The government brought this Bill following a Supreme Court ruling that states could collect taxes on mineral-bearing land and mining rights with retrospective effect from April 1, 2005.

Governor Gehlot said, "...there is an encroachment of State Legislature / Bill on the field occupied by the Parliament." Noting that the Directive Principles of State Policy clearly contemplates and mandates that the ownership and control of the material resources of the community are so distributed to serve the common good, and the operation of the economic system does not result in concentration of wealth, he said, the state government, through the Bill, "proposes to collect huge and substantial amounts to enrich itself".

The Governor said there is eminent necessity to reserve the Bill for the assent of the Hon'ble President of the India, as: "The provisions of the Bill will have an impact on the earlier passed parliamentary legislations/central acts such as Environmental Protection Act 1986, Forest Conservation Act 1980, and Mines and Minerals (Development and Regulation) Act 1957 which occupies the Mineral Bearing Lands." The Bill contemplates recovery of taxes on sales with effect from 2005 (which) is also amounting to occupying and repugnant to the field occupied by the law made by the Parliament or Supreme Court of India, Gehlot stated, citing the Supreme Court's judgement.

"The objective of the Bill appears to transgress the other constitutional limitations and provisions." The Governor further said, "The objective of the Bill also calculated to adversely affect the legitimate interest of other state or its people." PTI KSU KH

Source: PTI