K'taka likely to impose 1-2 pc cess on movie tickets, OTT subscriptions

The Congress government in Karnataka is mulling to impose 1-2 per cent cess on movie tickets and OTT subscriptions by enacting the Karnataka Cine and Cultural Workers (Welfare) Bill, 2024. 

The Bill tabled in the Assembly on Friday states: "A cess shall be levied on cinema tickets, subscription fees, and all revenues generated from the related establishments in the state known as the 'Cine and Cultural Activists Welfare Cess'. The cess levied under Sub-section (1) shall be at such rates as may be notified by the government, and it shall not exceed 2 per cent but shall not be less than 1 per cent on cinema tickets, subscription fees, and all revenues generated from the related establishments."

The government may, by notification, revise the rate of contribution specified once in three years, taking into account the amount needed for the implementation of the scheme, it adds.

The Bill is intended to provide social security to the cine and cultural workers by constituting a welfare board and thereby promoting their welfare in the state. The nominated members of the board will have a term of three years and the government may extend their tenure for another one year.

The Bill states that any amount of welfare cess due under this Act from an employer shall be recoverable in the same manner as arrears of land revenue.

Taking strong objection to the proposal, Karnataka BJP took to X to slam the Congress government, saying in a bid to save his chair, Chief Minister Siddaramaiah is now trying to impose tax on cine lovers.

"Despite the Kannada film industry struggling with hardships, the Chief Minister, who has not paid attention to these issues, has proposed the Karnataka Cine and Cultural Workers (Welfare) Bill in the Assembly to impose a 2 per cent tax on movie tickets and OTT subscriptions to collect revenues," the post read.

"The cowardly Congress government, which has already imposed taxes on everything, has now raised its 'hand' to strike a tax blow on moviegoers, which is a shameful act," it added.