New Delhi, Aug. 12 -- On Monday, the central government introduced a Bill in the Parliament that seeks to bar states from taxing minerals. If passed, the law will provide a welcome relief to the mining sector. Mint explains how minerals have been historically taxed and the significance of the proposed law.

The Centre is amending the Mines and Minerals (Development and Regulation) Act, 1957, by introducing a new section, 9D, which specifically prohibits states from imposing any levies on mined minerals. It states "no tax, cess or such other levy (by whatever name called) shall be imposed by the state government on mineral rights; or mineral bearing lands, either based on mineral quantity, mineral value, royalty or otherwise, except in acc...