Karnataka Government Mulls Imposing 2 Per Cent Cess On Movie Tickets, OTT Subscription Fees For Cinema, Cultural Activists' Welfare

The Karnataka government is reportedly considering a proposal to impose a 2 per cent cess on movie tickets and OTT subscription fees to support cinema and cultural artists in the state.

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

This bill proposes that government sets up a fund called 'The Karnataka Cine and Cultural Activists Social Security and Welfare Fund' aimed at assisting cinema and cultural activists in Karnataka.

According to the bill, a 'Cine and Cultural Activists Welfare Cess' will be imposed on movie tickets, subscription fees, and related establishment revenue in the state.

This cess will vary from 1 to 2 percent, as notified by the government, with rate revision likely to be done every three years.

"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 per cent on cinema tickets, subscription fees, and all revenue generated from the related establishments," the bill stated, Moneycontrol reported.

The state's labour department is now working on modalities of how the cess on OTT subscriptions can be collected.

The government will transfer the collected cess to the Karnataka Cine and Cultural Activists' Welfare Board.

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

"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.

The bill covers cine and cultural activists recognised by government-approved academies, including the Karnataka Chalanachithra Academy, Karnataka Nataka Academy, Karnataka Sangeetha Nruthya Academy, Karnataka Janapada Academy, Karnataka Lalithakala Academy, Karnataka Yakshagana Academy, and Karnataka Bayalata Academy.

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