The new Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, is causing worry for theatre owners and streaming platforms. The law adds a 2% fee on movie tickets and OTT subscriptions to support film workers and cultural activists.
Even though the fee is small, there are concerns it will raise costs for viewers, which could hurt cinemas and streaming services that are already struggling.
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There is also fear that other states might adopt similar fees, adding more pressure on the industry.
Experts say that the industry is facing tough times and that this extra fee is another headache. They believe the focus should be on policies that boost growth and create jobs, not add more financial strain.
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Analysts estimate that this fee could cost the industry around ₹55 crore each year. Legal experts point out that while similar fees have been applied before, this is one of the first times it affects OTT platforms.
Other states might follow Karnataka’s example, which could lead to more widespread issues.
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There are also concerns that this fee could create confusion and legal challenges, especially since OTT services already pay GST.
Broadcast industry insiders also warned that this fee might be seen as double taxation and could be contested in court, especially since many services operate or bill from outside Karnataka.
