Two percent cess on movie tickets and OTT subscriptions
The Karnataka government is considering a new levy on movie tickets and Over-the-Top (OTT) subscription fees to support cinema and cultural artists. This proposed cess, ranging from 1 to 2 percent, will be reviewed every three years and applied to cinema tickets, subscription fees, and revenue generated from related establishments within the state.
The Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, introduced in the state assembly on July 19, 2024, outlines the creation of a seven-member welfare board. This board will manage a fund Aimed at providing social security and welfare for artists. The bill defines a cinema and cultural activist as anyone working in the film industry, including actors, musicians, dancers, and other technical or unskilled workers. It also covers individuals involved in activities declared by the government under this Act.
In addition to film tickets and OTT subscriptions, the government plans to extend the cess to theatrical plays performed within the state. The funds collected will support various schemes to ensure the welfare of artists.
However, the proposal has faced criticism from the Bharatiya Janata Party (BJP). BJP spokesperson Shehzad Poonawala described the new levy as another burden on the people of Karnataka, criticizing the Congress government’s move as a financial blow.
The bill proposes a phased implementation to minimize the impact on the state budget and avoid financial strain. Employers will be required to deposit the cess monthly and submit biannual returns online or through a designated web portal. If the bill is passed, the Karnataka Cinema and Cultural Artists Welfare Board will be established in Bengaluru. This board will be chaired by the department minister and a senior IAS official, with seventeen government-nominated members representing various cultural sectors and academies.
