Karnataka Governor Thaawarchand Gehlot has approved the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, paving the way for the implementation of a cess of up to 2% on movie tickets and OTT subscription fees. The bill, passed by the Karnataka Assembly in July 2024, aims to support the welfare of cinema and cultural artists in the state.
Under the new Act, a ‘Cine and Cultural Activists Welfare Cess’ will be applied to cinema tickets, subscription fees, and other related revenues within Karnataka. The cess, ranging from 1% to 2%, will be subject to review every three years. This welfare fund is expected to enhance the livelihood of artists across the state’s cinema and cultural sectors.
Mohammad Mohsin, principal secretary of the Labour Department, stated that the rules for implementing the Act will soon be framed, emphasizing that the cess will coexist with the existing GST on cinema tickets. The specifics for OTT fees collection are being finalized, potentially aligning with the current GST framework.
Key Highlights:
- The Karnataka Cine and Cultural Activists (Welfare) Bill, 2024 introduces a 1-2% cess on movie tickets and OTT subscriptions for the welfare of cinema and cultural artists.
- The cess will be reviewed every three years and applied alongside GST.
- The Labour Department is working on the modalities for collecting the cess from OTT platforms, likely linking it with existing GST systems.