Watching movies in theatres might get a little costlier in Karnataka. The state government is now considering to impose a tax of up to 2 percent on movie tickets and OTT subscription fees. On Friday, the Karnataka Cine and Cultural Activists (Welfare) Bill was tabled in the state assembly.
The bill proposes to establish a fund called ‘The Karnataka Cine and Cultural Activists Social Security and Welfare Fund’. 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 tax might range from 1 to 2 percent and might get revised every three years.
“The cess will be levied at rates which will be notified by the government and shall not exceed 2 percent but shall not be less than 1 percent on cinema tickets, subscription fees, and all revenue generated from the related establishments,”, the bill reads as quoted by Moneycontrol.
The bill claims that the cess is being levied to benefit cinema and cultural artists in the state. While it is not yet decided how the tax on OTT subscriptions might be collected, the funds will be transferred to the Karnataka Cine and Cultural Activists’ Welfare Board.
“Cine and cultural activists include any person employed in the cinema field as an artist (such as an actor, musician, or dancer) or in any skilled, unskilled, manual, supervisory, technical, or artistic role. This also includes individuals engaged in activities declared by the government for this Act”, the bill added.
“Cine and cultural activists recognised by government-approved academies, such as the Karnataka Chalanachithra Academy, Karnataka Nataka Academy, Karnataka Sangeetha Nruthya Academy, Karnataka Janapada Academy, Karnataka Lalithakala Academy, Karnataka Yakshagana Academy, and Karnataka Bayalata Academy, are covered under this bill,” it stated.
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