Karnataka Govt Mulls 2% Cess On OTT Platforms, Movie Tickets

SUMMARY

The Karnataka Govt has proposed 'Cine and Cultural Activists Welfare Cess' to be imposed on cinema tickets, subscription fees, and related establishment revenue in the state

The cess (tax) will range between 1% to 2%, as notified by the government and the rates are subjected to revision every three years

Earlier this month, the Karnataka government released a draft bill aimed at protecting the rights of gig workers in the state, while also offering them social and income security

The Karnataka government is reportedly considering a proposal to impose a 2% cess on movie tickets and OTT subscription fees to support film and cultural artists.

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

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 (tax) will range between 1% to 2%, as notified by the government and the rates are subjected to revision every three years, the report said.

Earlier this month, the Karnataka government released a draft bill aimed at protecting the rights of gig workers in the state, while also offering them social and income security. It proposes various welfare measures for gig workers and mandates the app-based delivery and ride-hailing platforms to provide them with social security benefits.

Following the announcement, Karnataka’s job quota bill attracted widespread criticism and the state government put the bill on hold, a week ago.

“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 report said, citing the bill.

“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”, according to the bill.

The government has been bringing in initiatives to aid the livelihood of the people hailing from its region. Earlier in March, the Karnataka government withdrew the e-bike taxi scheme due to the protests of auto-rickshaw unions in Bengaluru, citing its blatant misuse.