Karnataka Film Industry Challenges Surge Amid Proposed 2% Cess

The Karnataka government’s proposal to levy up to 2% cess on movie tickets and OTT subscriptions has faced opposition from the Karnataka Film Chamber of Commerce. President N M Suresh highlighted that this decision could further endanger an industry already struggling, with 130 theatres at risk of closure.

The Karnataka government's new proposal to levy up to 2% cess on movie tickets and OTT subscriptions is facing backlash from the Karnataka Film Chamber of Commerce. President N M Suresh cautioned that this move could further jeopardize an already struggling industry, with 130 out of 637 theatres on the brink of closure.

Suresh voiced his concerns during a press conference organized to oppose the Karnataka Cine and Cultural Activists (Welfare) Bill 2024. The bill, which suggests imposing the Cess, was passed during the Assembly session on July 23 and is awaiting the Governor’s approval to become law.

According to Suresh, the Chamber plans to meet with Chief Minister Siddaramaiah to discuss potential revisions to the tax, particularly concerning Kannada films. He emphasized that while creating a workers' welfare fund is commendable, it should not burden producers, who are already struggling to make profits.