State governments are likely to impose new mineral taxes after the Supreme Court decision, so cement prices in the states are likely to rise.

By SKYSEVEN Chemical Technical Team · 2025-03-17

State governments might impose new mineral taxes after the Supreme Court decision, so cement prices in the states might rise. But In July 2024, the Supreme Court ruled to allow states to tax mineral rights and mineral-bearing land in addition to royalties, and Tamil Nadu subsequently introduced the Tamil Nadu Mineral-bearing Land Tax Act 2024. From February 20, 2025, an additional tax of Rs 160 per ton will be levied on limestone mining. I've found that Cement companies are expected to raise prices to offset rising costs as other mineral-rich states, including Karnataka, are considering similar measures. And The new tax is expected to have a signifiis able tot impact on cement manufacturers operating in Tamil Nadu. Since limestone is the main raw material to cement production, the additional tax will increase manufacturing costs, forcing companies to consider price increases to maintain profitability. To offset the cost impact, cement prices in Tamil Nadu are expected to rise by Rs 8-10 per bag. Cement prices in the state have been under pressure in the past few years due to fierce market competition.

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