![[BREAKING] "States can Levy, Renew Demand for Tax on Mineral Rights Retrospectively From April 1, 2005": CJI Led 9-Judge Bench](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/07/image-36-2.png?resize=447%2C367&ssl=1)
Justice Nagarathna warned about the potential collapse of the federal system if states are allowed to tax minerals, citing disruption of power balance and governance structure. She argued that royalties should be considered taxes, highlighting risks of competition, increased costs, and negative economic impact. This could lead to decreased mining activity and strained foreign reserves.
