Karnataka plans to impose 2 percent cess on movie tickets and OTT subscription fees
On July 19, the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024 was tabled in the state Assembly. The bill proposes the government establish a fund called ‘The Karnataka Cine and Cultural Activists Social Security and Welfare Fund’ to benefit cine and cultural activists in the state.
- Jul 20, 2024,
- Updated Jul 20, 2024 12:28 PM IST
The Karnataka government is reportedly considering a proposal to impose a 2 percent cess on movie tickets and OTT subscription fees to support cinema and cultural artists in the state.
On July 19, the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024 was tabled in the state Assembly. The bill proposes the government establish a fund called ‘The Karnataka Cine and Cultural Activists Social Security and Welfare Fund’ to benefit cine and cultural activists in the state.
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 will range between 1 to 2 percent, as notified by the government. The rate will be revised every three years.
Labour Secretary Mohammad Mohsin mentioned that the government also plans to extend this cess to theatrical plays staged within the state.
Labour department officials said they are now working on the modalities of how the cess on OTT subscriptions can be collected. The cess levied collected by the government will be transferred to the Karnataka Cine and Cultural Activists' Welfare Board.
The board will include members such as the Minister-in-charge, Department of Labour, Additional Chief Secretary/Principal Secretary/Secretary, Department of Labour, Labour Commissioner, and 17 members nominated by the government, including cine workers and others.
The Karnataka Film Workers Artists Technicians Union estimates that around 2,355 workers, including artists and technicians, are employed in the industry. However, many small-time artists and technicians may not be registered with any organisation in the state.
Each registered member will receive a unique identity card to claim benefits. There is some uncertainty about how the cess will be imposed on OTT subscriptions, which are typically managed through online platforms without local addresses. Mohsin mentioned that discussions are ongoing about whether OTT subscriptions will be included. The focus seems to be on OTT productions by the local film industry.
The Karnataka government is reportedly considering a proposal to impose a 2 percent cess on movie tickets and OTT subscription fees to support cinema and cultural artists in the state.
On July 19, the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024 was tabled in the state Assembly. The bill proposes the government establish a fund called ‘The Karnataka Cine and Cultural Activists Social Security and Welfare Fund’ to benefit cine and cultural activists in the state.
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 will range between 1 to 2 percent, as notified by the government. The rate will be revised every three years.
Labour Secretary Mohammad Mohsin mentioned that the government also plans to extend this cess to theatrical plays staged within the state.
Labour department officials said they are now working on the modalities of how the cess on OTT subscriptions can be collected. The cess levied collected by the government will be transferred to the Karnataka Cine and Cultural Activists' Welfare Board.
The board will include members such as the Minister-in-charge, Department of Labour, Additional Chief Secretary/Principal Secretary/Secretary, Department of Labour, Labour Commissioner, and 17 members nominated by the government, including cine workers and others.
The Karnataka Film Workers Artists Technicians Union estimates that around 2,355 workers, including artists and technicians, are employed in the industry. However, many small-time artists and technicians may not be registered with any organisation in the state.
Each registered member will receive a unique identity card to claim benefits. There is some uncertainty about how the cess will be imposed on OTT subscriptions, which are typically managed through online platforms without local addresses. Mohsin mentioned that discussions are ongoing about whether OTT subscriptions will be included. The focus seems to be on OTT productions by the local film industry.