What Changes Did the Haryana Cabinet Make to Mining Fees and Aviation Fuel Tax?

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What Changes Did the Haryana Cabinet Make to Mining Fees and Aviation Fuel Tax?

Synopsis

In a pivotal move, the Haryana Cabinet has introduced significant amendments to the ISTP framework for mining minerals and slashed the VAT on aviation turbine fuel, marking a transformative step for the state's transport and aviation sectors. Discover how these changes will impact the economy and air travel.

Key Takeaways

  • The VAT on aviation turbine fuel has been reduced to one per cent.
  • A fee of Rs 80 per metric tonne is now imposed on all mining transportation.
  • Royalty for minor minerals will be 25 per cent above applicable rates.
  • New medical allowances for Legislative Assembly members over 60 years have been introduced.
  • ISTP implementation is crucial due to Haryana's location and mineral traffic.

Chandigarh, Aug 1 (NationPress) The Haryana Cabinet, under the leadership of Chief Minister Nayab Singh Saini, convened on Friday to sanction modifications to the rules governing the implementation of the inter-state transit pass (ISTP) framework for the transportation of mining minerals. Additionally, a notable decrease in the value-added tax (VAT) on aviation turbine fuel (ATF) has been approved, reducing it to one per cent.

The amendments to sub-rule 14 of Rule 98-A of the Haryana Minor Mineral Concession, Stocking, Transportation of Minerals and Prevention of Illegal Mining Rules of 2012 now impose a fee of Rs 80 per metric tonne on all mineral-laden vehicles, regardless of their destination—this replaces previous charges of Rs 100 for in-state transport and Rs 20 for out-of-state transport.

An official statement also indicated that the royalty rate for stone and boulder gravel will be set at Rs 80 per metric tonne. Furthermore, the Cabinet has approved the removal of Clause 17 in the First Schedule. The royalty for minor minerals will now be 25 per cent above the rates applicable to the mineral. The government emphasizes that its objectives include curbing illegal mining and enhancing the monitoring of mineral transportation.

Considering the state's geographical positioning and the influx of mineral traffic from six neighboring states, the effective implementation of the ISTP is deemed crucial. The Cabinet also sanctioned the Haryana Contractual Employees (Security of Services) Rules of 2025.

Designations for punishing and appellate authorities have been determined. The head of the organization will be the competent authority for imposing penalties on Group B equivalent posts, while the Administrative Secretary will act as the appellate authority.

To promote affordable regional air connectivity under the UDAN initiative, the Cabinet has approved a concessional VAT rate of one per cent on aviation turbine fuel sold at all airports within the state, down from 20 per cent.

This concessional VAT will apply to ATF sold for all passenger flights, including those under the RCS-UDAN scheme, as well as maintenance, repair, and overhaul (MRO) activities and air adventure services across all Haryana airports. This rate will be in effect from the date of notification until July 6, 2027.

Moreover, the Cabinet has approved an amendment to the Haryana Legislative Assembly (Medical Facilities to Members) Rules, 1988, aiming to extend medical benefits to each Legislative Assembly member, their families, and family pension recipients. A new provision has also been added to offer a fixed medical allowance of Rs 10,000 per month for members aged over 60 years.

Point of View

These amendments by the Haryana Cabinet reflect a balanced approach to boosting economic growth while ensuring regulatory compliance in the mining sector. As the government prioritizes the prevention of illegal mining and promotes affordable air travel, it showcases a commitment to sustainable development.
NationPress
08/10/2025

Frequently Asked Questions

What is the new VAT rate for aviation turbine fuel in Haryana?
The new VAT rate for aviation turbine fuel in Haryana has been reduced to one per cent from the previous rate of 20 per cent.
What changes were made to the mining transportation fees?
The Haryana Cabinet has imposed a fee of Rs 80 per metric tonne on all mineral-laden vehicles, regardless of destination, replacing the previous fees.
How will these amendments affect illegal mining?
The amendments aim to strengthen monitoring and regulation processes to effectively curb illegal mining activities.
When will the new VAT rate on ATF be effective until?
The concessional VAT rate on aviation turbine fuel will be applicable until July 6, 2027.
What benefits are provided to members of the Legislative Assembly under the new amendments?
The amendments extend medical facilities to members and their families, with a new fixed medical allowance for members over 60 years.
Nation Press