📷 Image: Wikimedia Commons / Prime Minister's Office
Politics
Jharkhand Finance Minister Calls on Centre to Reinstate State Right to Impose Mining Cess
✍️ The Times of India
🗓 20 Sep 2026, 05:31 AM
👁 14
Jharkhand’s finance minister has written to the Union government urging the restoration of state authority to levy a cess on mining products, arguing it is essential for the state’s revenue.
Jharkhand’s finance minister sent a formal communication to the Centre, requesting that the central government restore the power of state governments to impose a cess on mining products. The minister argued that the cess is a critical source of revenue for the mineral‑rich state, which relies heavily on mining royalties for its development programmes.
The demand comes amid ongoing debates over fiscal devolution between the Union and states. Jharkhand officials contend that the suspension of the cess has created a shortfall in the state’s budget, affecting funding for infrastructure and social schemes.
Historically, the central government had allowed states to levy a modest cess on extracted minerals, but recent policy revisions curtailed that authority. The Jharkhand minister highlighted that reinstating the cess would align with the principles of cooperative federalism and ensure a fair share of mining profits for the state.
No immediate response has been recorded from the Ministry of Finance. Analysts say that any decision will need to balance revenue considerations with the broader national mining policy framework.
The demand comes amid ongoing debates over fiscal devolution between the Union and states. Jharkhand officials contend that the suspension of the cess has created a shortfall in the state’s budget, affecting funding for infrastructure and social schemes.
Historically, the central government had allowed states to levy a modest cess on extracted minerals, but recent policy revisions curtailed that authority. The Jharkhand minister highlighted that reinstating the cess would align with the principles of cooperative federalism and ensure a fair share of mining profits for the state.
No immediate response has been recorded from the Ministry of Finance. Analysts say that any decision will need to balance revenue considerations with the broader national mining policy framework.