Planning a movie in Karnataka? Your ticket may cost more as state plans 2% additional cess
Karnataka government is set to levy an additional maximum of 2% cess on cinema tickets in the state from September 30, 2026.
- Sep 18, 2026,
- Updated Sep 18, 2026 2:24 PM IST
A movie outing in Karnataka could soon cost more as the state government plans to levy an additional cess on cinema tickets. Karnataka government is set to levy an additional maximum of 2% cess on cinema tickets in the state from September 30, 2026.
The Multiplex Association of India (MAI) has raised concerns over the move, saying the proposed levy could make cinema outings less affordable for consumers at a time when the industry is trying to bring audiences back to theatres. MAI has urged the government to reconsider the proposal.
Why multiplexes are opposing the 2% cess
According to MAI, the additional levy would directly increase the cost of a cinema outing for consumers, while the industry is working to make theatrical entertainment more accessible and encourage audiences to return to cinemas.
“At a time when the Government has been pursuing tax rationalisation and ease of doing business, introducing an additional levy on cinema tickets is counterproductive and ultimately places an additional burden on the consumer. Cinema is a mass entertainment medium enjoyed by millions of families and young people, and every additional tax makes the experience less affordable,” said Kamal Gianchandani, President, Multiplex Association of India.
MAI says cess goes against GST objective
The association said the proposed cess also runs contrary to the GST objective of eliminating cascading indirect taxes, one of the fundamental objectives behind the introduction of GST.
MAI said an additional cess on a transaction already subject to GST risks creating a tax-on-tax effect that the GST regime sought to eliminate.
The association said the taxation framework should instead move towards greater simplicity, transparency and predictability for consumers and businesses.
Cinema industry seeks alternative funding mechanism
MAI also highlighted the cinema exhibition industry's contribution to Karnataka's economy through employment and its wider ecosystem of filmmakers, distributors, production companies, mall operators, food and beverage businesses and technology providers.
“We fully recognise the importance of supporting artists and cultural workers, and we remain committed to working constructively with the Government on measures that can achieve this objective. However, placing an additional burden on cinema-going consumers is not the appropriate way forward. We urge the Karnataka Government to reconsider the proposed cess and explore alternative mechanisms for funding welfare initiatives without increasing the tax burden on the consumer,” added Mr. Devang Sampat, Managing Director, Cinepolis India.
MAI said it remains committed to engaging with the Karnataka Government and stakeholders to find a solution that supports the welfare of the creative community while protecting consumer affordability and the long-term growth of the cinema exhibition sector.
A movie outing in Karnataka could soon cost more as the state government plans to levy an additional cess on cinema tickets. Karnataka government is set to levy an additional maximum of 2% cess on cinema tickets in the state from September 30, 2026.
The Multiplex Association of India (MAI) has raised concerns over the move, saying the proposed levy could make cinema outings less affordable for consumers at a time when the industry is trying to bring audiences back to theatres. MAI has urged the government to reconsider the proposal.
Why multiplexes are opposing the 2% cess
According to MAI, the additional levy would directly increase the cost of a cinema outing for consumers, while the industry is working to make theatrical entertainment more accessible and encourage audiences to return to cinemas.
“At a time when the Government has been pursuing tax rationalisation and ease of doing business, introducing an additional levy on cinema tickets is counterproductive and ultimately places an additional burden on the consumer. Cinema is a mass entertainment medium enjoyed by millions of families and young people, and every additional tax makes the experience less affordable,” said Kamal Gianchandani, President, Multiplex Association of India.
MAI says cess goes against GST objective
The association said the proposed cess also runs contrary to the GST objective of eliminating cascading indirect taxes, one of the fundamental objectives behind the introduction of GST.
MAI said an additional cess on a transaction already subject to GST risks creating a tax-on-tax effect that the GST regime sought to eliminate.
The association said the taxation framework should instead move towards greater simplicity, transparency and predictability for consumers and businesses.
Cinema industry seeks alternative funding mechanism
MAI also highlighted the cinema exhibition industry's contribution to Karnataka's economy through employment and its wider ecosystem of filmmakers, distributors, production companies, mall operators, food and beverage businesses and technology providers.
“We fully recognise the importance of supporting artists and cultural workers, and we remain committed to working constructively with the Government on measures that can achieve this objective. However, placing an additional burden on cinema-going consumers is not the appropriate way forward. We urge the Karnataka Government to reconsider the proposed cess and explore alternative mechanisms for funding welfare initiatives without increasing the tax burden on the consumer,” added Mr. Devang Sampat, Managing Director, Cinepolis India.
MAI said it remains committed to engaging with the Karnataka Government and stakeholders to find a solution that supports the welfare of the creative community while protecting consumer affordability and the long-term growth of the cinema exhibition sector.