Cement producers in the State expect the proposed mineral-bearing land tax in Tamil Nadu to have an adverse impact.

The Legislative Assembly passed the Tamil Nadu Mineral Bearing Land Tax Act, 2024 (the Act), which was published in the gazette on February 20, 2025. The Act imposes mineral-bearing land tax on mining of various minerals, including limestone at ₹160 per metric tonne.  The Act shall come into force on a date decided by the Government of Tamil Nadu, Dalmia Bharat Ltd. said in a stock exchange announcement.

Dalmia Bharat further said upon the notification the tax may impact all Tamil Nadu based cement producers. 

The said levy is likely to have an impact of about ₹130 crore per annum which the company will try to pass on to its customers, it added.

The government is yet to make the rules for carrying out the purposes of this act.  The rules may provide for the manner of levy, assessment and collection of tax, manner of payment of tax, etc, Ramco Cements Ltd., said in a stock exchange announcement.

Cement is already suffering high incidence of taxes and duties.  The imposition of new tax would adversely affect the cement industry and make cement costlier for the end user, Ramco Cements said.

“It is also felt that the rates proposed by the Government of Tamil Nadu are also on the higher side compared to the rates of the neighbouring States. Hence, we propose to represent to the government to reconsider the proposal to levy mineral-bearing land tax,” the company added.