K'taka now proposes 2% cess on movie tickets for cine 'activists'' welfare

The proposed cess comes months after the state High Court struck down the government's move to cap movie ticket prices at ₹200

In a move that is at odds with its earlier decision of capping movie ticket prices—a decision recently stayed by the High Court—the Karnataka government has now proposed a 2 per cent cess on cinema tickets and television entertainment channel subscriptions to finance welfare programmes for so-called cine and cultural activists, PTI reported on Friday, citing draft rules issued by the state’s Labour Department.

 

To generate funds for the schemed, the legislation proposes a 1–2 per cent cess on movie tickets in all theatres, including multiplexes, and subscription services to television entertainment channels. The draft rules, however, fix the cess rate at 2 per cent.

 

 

Who can be a cine activist?

 

According to the legislation, a "Cine and Cultural Activist" refers to any individual working in the film industry, either as an artist (such as an actor, musician, or dancer) or performing any type of work—skilled, unskilled, manual, supervisory, technical, artistic, or otherwise — or anyone involved in other roles as designated by the government.

 

The draft rules — framed under the Karnataka Cine and Cultural Activists (Welfare) Act, 2024 — propose the creation of a welfare board and a dedicated fund to support social security and welfare programmes for the state’s cine and cultural activists, the report added.

 

U-turn from cap to cess

 

The development follows the Karnataka High Court’s decision three days ago to stay the state government’s order capping ticket prices at ₹200, excluding taxes, across all cinema halls and multiplexes. The government argued that the rules aimed to benefit directors, the film industry, and moviegoers. However, multiplex owners and some film producers moved against the rules, calling them unreasonable and arbitrary.

 

The proposed cess, though, will likely push up the cost of viewership for movie audiences, whose welfare the government had touted as the reason for capping the price of cinema tickets.