Karnataka likely to impose 2% cess on movie tickets, OTT subscriptions

Mangalore Today News Network

Bengaluru, July 20, 2024: The Karnataka government is considering implementing a cess on film tickets and Over-the-Top (OTT) subscription fees to support cinema and cultural artists.

The cess will range from 1 to 2 percent and will be reviewed by the state government every three years. It will be imposed upon cinema tickets, subscription fees, and revenue generated from the related establishment within the state.

The Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, was tabled in the state assembly on Friday, July 19.

The bill proposes the establishment of a seven-member welfare board and the creation of a fund to finance schemes aimed at providing social security and welfare for artists.

"Any individual working in the film industry as an artist (actor, musician, dancer, etc.) or in any manual, supervisory, technical, artistic, or unskilled capacity is considered a cinema and cultural activist. This also applies to people who are involved in activities that the government has declared in connection with this Act," the bill reads.

Officials stated that the state government also plans to extend the cess to theatrical plays staged within the state.

Meanwhile, the BJP has criticised the Karnataka government’s proposal to levy a new cess on cinema tickets and OTT subscriptions. BJP spokesperson Shehzad Poonawala, in a statement on X, described the proposal as another blow by the Congress government to the people of Karnataka.

How Will Karnataka Government Implement Cess On Film Tickets, OTT?

The bill proposes a phased implementation to minimise the impact on the state budget and prevent financial strain. The bill mandates employers to deposit the cess monthly and submit biannual returns online or through a designated web portal.

If passed, the bill will establish the Karnataka Cinema and Cultural Artists Welfare Board in Bengaluru, chaired by the department minister and a senior IAS official, with seventeen government-nominated members representing various cultural sectors and academies.