Karnataka government proposes 2% cess on movie tickets, TV subscriptions

Karnataka proposes a 2% cess on movie tickets and TV subscriptions to fund welfare for cine and cultural workers.

The Karnataka government has moved a step closer to funding welfare initiatives for cine and cultural workers by proposing a new cess on entertainment.

A crowd of people waiting in line to get movie tickets outside a cinema hall. (AFP)

According to draft rules notified by the Labour Department, a 2 per cent cess will be levied on movie tickets and the subscription fees of television entertainment channels across the state, news agency PTI reported.

The proposal stems from the Karnataka Cine and Cultural Activists (Welfare) Act, 2024, which was passed earlier this year by the state legislature. The Act mandates the setting up of a welfare board and a dedicated fund aimed at ensuring social security for cine and cultural activists.

While the legislation had provided for a cess in the range of 1 to 2 per cent, the draft rules notified on September 24 finalise the rate at the upper limit of 2 per cent.

“Two per cent cess on cinema tickets of all theatres, including multiplexes. Two per cent cess on total transaction of television entertainment channels operating in Karnataka,” the notification states.

The Act also makes registration mandatory for cine and cultural workers aged between 18 and 60 years, provided they fall under categories defined by the government.

As per the law, a “Cine and Cultural Activist” includes anyone working in the film industry as an artist, be it an actor, musician, or dancer, as well as individuals engaged in skilled, unskilled, supervisory, technical, artistic, or other roles. The definition also extends to other cultural activities as notified by the government.

Registered members will become eligible for a range of benefits such as accident compensation in cases of death or disability, medical reimbursements, funeral assistance, natural death benefits for nominees, educational aid for children, maternity benefits, and pensions.