Ramco Cements has expressed concerns over the newly introduced Tamil Nadu Mineral Bearing Land Tax Act, 2024, which aims to impose a tax on lands bearing minerals. The act was published in the Tamil Nadu Government Gazette Extraordinary on February 20, 2025.
In a regulatory filing, Ramco Cements stated that the Tamil Nadu government is yet to notify the enforcement date and formulate the rules for the act, which will determine the levy, assessment, and collection of tax.
Impact on the cement industry
The company highlighted that the cement sector is already burdened with high taxes and duties, and the introduction of this new land tax could adversely impact operations and make cement more expensive for consumers. Ramco also pointed out that the proposed tax is higher compared to similar levies in neighboring states, potentially making Tamil Nadu a less competitive market for cement manufacturers.
Ramco’s appeal to the government
In response to the proposed taxation, Ramco Cements plans to represent its concerns to the Tamil Nadu government, urging them to reconsider the levy. The company emphasized that higher tax rates could strain the industry and lead to increased costs for end-users.
The cement industry, which relies on mineral-rich land for raw materials, may face significant financial implications if the new tax structure is implemented at the proposed rates.
Investors and stakeholders will be closely watching for further government notifications regarding the tax implementation and potential revisions following industry representations.
