2% Cess On Movie Tickets & OTT Subscriptions

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To support the cine and cultural activists in the state, the government of Karnataka plans to impose a 2 per cent cess on movie tickets and OTT subscription fees.

Yesterday (July 19), the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024 was introduced in the state assembly, proposing the government to establish a fund named “The Karnataka Cine and Cultural Activists Social Security and Welfare Fund”.

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Currently, the government plans to implement a cess of 1 or 2 per cent. The percentage will be revised every three years.

Reportedly, Labour Department officials are currently working on figuring out a way how to collect the cess through OTT subscriptions.

The collected cess will be transferred to the Karnataka Cine and Cultural Activists’ Welfare Board, consisting of members like the Minister-in-charge (Department of Labour), Additional Chief Secretary/Principal Secretary/Secretary (Department of Labour) and Labour Commissioner.

The department also includes 17 members nominated by the government. These 17 members will be individuals from the acting and technical side of the cinema industry.

According to the reports, artists from government-recognised academies like Karnataka Chalanachithra Academy, Karnataka Nataka Academy, Karnataka Sangeetha Nruthya Academy, Karnataka Janapada Academy, Karnataka Lalithakala Academy, Karnataka Yakshagana Academy and Karnataka Bayalata Academy would be covered under this bill.

More details about the bill will be revealed once it gets passed in the assmebly.

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