Share Market: Why Supreme Court’s Decision Led to Decline in Mining Stocks?

Share Market: Recently, the market saw a big drop in mining stocks due to the Supreme Court’s judgment. The Supreme Court initially decided that mineral taxes would take effect on July 25, 2024. But in a recent ruling, the Supreme Court ruled that states had to start taxing mining operations on April 1, 2005, i.e., 19 years ago. Starting on April 1, 2026, taxes will be collected over a period of 12 years. For the period prior to July 2024, there won’t be any additional fines or interest.

Shares Witness Decline

Vedanta saw a 0.8% decrease in stock price after this news, Tata Steel saw a 2% decline, and other companies saw declines as well, including Coal India and JSW Steel. According to media reports, the Odisha government may impose taxes totaling Rs 17,300 Cr on Tata Steel alone, with additional taxes of up to Rs 70,000 Cr on public sector undertakings (PSUs).