Karnataka proposes 2% dess on movie tickets and OTT subscriptions to support cultural artists

The Karnataka government is considering a new proposal to impose a 2% cess on movie tickets and OTT subscription fees. This initiative, aimed at providing financial support to cultural artists and filmmakers in the state, is part of the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, which was tabled in the assembly on July 19, 2024.

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If implemented, this additional tax would be on top of the existing Goods and Services Tax (GST) applied to cinema tickets and OTT platforms. The collected cess will be transferred to the Karnataka Cine and Cultural Activists' Welfare Board. This board will include key members such as the Minister-in-charge of the Department of Labour, the Additional Chief Secretary/Principal Secretary/Secretary of the Department of Labour, the Labour Commissioner, and 17 government-nominated members, including cine workers and other representatives.

The proposal has already sparked significant criticism from various quarters, with concerns about the additional financial burden it could place on the middle class. Critics argue that the extra cost might deter audiences from visiting cinemas and subscribing to OTT services, potentially impacting the local cinema industry. "This additional cess could make entertainment less accessible, particularly for middle-class families already grappling with rising living costs," commented an industry analyst.

However, supporters of the bill highlight its potential benefits for the cultural sector. "The fund will provide much-needed financial support to local artists and filmmakers, fostering creativity and sustaining Karnataka's rich cultural heritage," stated a government spokesperson.

As the assembly continues to deliberate on the bill, stakeholders from the entertainment industry and the general public are closely monitoring the developments. The final decision will significantly influence the state's cultural and economic landscape.