If it wasn’t already a costly affair to watch a film in a theatre in Bengaluru, we come bearing worse news. Karnataka is planning to impose a cess of up to 2 per cent on movie tickets and OTT subscriptions. With the telos to benefit cinema and cultural artists in the state, the government may hike up prices to your entertainment sources.
Karnataka Govt May Charge 2% Cess On Movie Tickets & OTT Subscriptions
As per a report by India Today, the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024 tabled in the Karnataka assembly on July 19 proposes to levy a cess of up to 2 per cent on OTT subscriptions and movie tickets. As per this bill, the state government must set up a fund named ‘The Karnataka Cine and Cultural Activists Social Security and Welfare Fund’. This fund will empower the cine and cultural activists in the state.
As per the bill, a ‘Cine and Cultural Activists Welfare Cess’ will be levied on subscription fees, cinema tickets and other related sources of revenue in the cess. As notified by the government, the cess will range between 1 to 2 per cent. And will be revised every three years. A report by Moneycontrol stated that the cess would be imposed as notified by the government. However, it won’t be less than 1 per cent of cinema tickets and subscription fees. Officials from the Labour department are currently working on ways to collect the cess on OTT subscriptions.
The government will collect the cess levied and then transfer it to the Karnataka Cine and Cultural Activists. The bill states that any person employed in the cinema field like an actor, musician, skilled, unskilled, manual, artistic or technical role will avail of these benefits. To minimise the impact on the state budget, the government will implement the proposed bill in a phased-out manner. The bill mandates employers to deposit this cess on a monthly basis and then submit the biannual returns online.
Also Read: Karnataka Monsoon Guide: 7 Things To Do In The State During Monsoons
Folks in Karnataka, does the 2 per cent cess on movie tickets and OTT subscriptions, worry you?
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