Karnataka likely to impose 2 per cent cess on movie tickets, OTT subscription fees

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Karnataka is considering imposing a cess of up to 2 percent on movie tickets and OTT subscription fees to benefit cinema and cultural artists in the state.

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

The bill proposes the government establish a fund called 'The Karnataka Cine and Cultural Activists Social Security and Welfare Fund' to benefit cine and cultural activists in the state.

According to the bill, a 'Cine and Cultural Activists Welfare Cess' will be imposed on cinema tickets, subscription fees, and related establishment revenue in the state. The cess will range between 1 to 2 percent, as notified by the government. The rate will be revised every three years.

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"The cess will be levied at rates which will be notified by the government and shall not exceed 2 percent but shall not be less than 1 percent on cinema tickets, subscription fees, and all revenue generated from the related establishments,", the bill accessed by Moneycontrol stated.

Labour department officials said they are now working on the modalities of how the cess on OTT subscriptions can be collected.

The cess levied collected by the government will be transferred to the Karnataka Cine and Cultural Activists' Welfare Board.

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The board will include members such as the Minister-in-charge, Department of Labour, Additional Chief Secretary/Principal Secretary/Secretary, Department of Labour, Labour Commissioner, and 17 members nominated by the government, including cine workers and others.

"Cine and cultural activists include any person employed in the cinema field as an artist (such as an actor, musician, or dancer) or in any skilled, unskilled, manual, supervisory, technical, or artistic role. This also includes individuals engaged in activities declared by the government for this Act", it stated.

"Cine and cultural activists recognised by government-approved academies, such as the Karnataka Chalanachithra Academy, Karnataka Nataka Academy, Karnataka Sangeetha Nruthya Academy, Karnataka Janapada Academy, Karnataka Lalithakala Academy, Karnataka Yakshagana Academy, and Karnataka Bayalata Academy, are covered under this bill," it stated.

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