Karnataka Assembly passes bill to impose cess on movie tickets and OTT subscription

Bengaluru (Karnataka) [India], July 24 : On Tuesday the Karnataka Assembly unanimously passed the Cine and Cultural Activists (Welfare) Bill of 2024, which aims to impose a cess of 2 per cent on movie tickets and Over-the-Top (OTT) subscriptions.
Karnataka Labor Minister Santosh S Lad in a post on X on Tuesday said that the Karnataka Cinema and Cultural Workers Welfare Bill was unanimously passed in the assembly.
"The Karnataka Cinema and Cultural Workers Welfare Bill - 2024 was introduced in the Assembly on Tuesday. At this time, many members of the House expressed their appreciation by giving suggestions and instructions about the bill. The bill was unanimously passed in the assembly," Santosh S Lad posted on X.
He further thanked the Chief Minister, the president of the assembly and all the members who gave their consent to provide such a unique service.
"I am thankful to the honourable chief minister, deputy chief minister, honourable president of the assembly, cabinet colleagues and all the members who gave their consent to provide such a unique service to the servants of Kannada Goddess," he added.
This bill would allow an increase in movie tickets and also add an extra charge for OTT platform subscriptions.
Earlier on July 20, the Karnataka government proposed a new cess ranging from one to two per cent, on cinema tickets and Over-the-Top (OTT) subscription fees to support film and cultural workers.
This fee will fund social security benefits such as ESI and PF for cine artists and cultural performers under the Labour Ministry's Karnataka Cine and Cultural Activists (Welfare) Bill of 2024.
The Karnataka Cine and Cultural Workers (Welfare) Bill, 2024, was tabled in the Assembly on July 19. The Cess ranges from 1 per cent to 2 per cent, the exact rate of which will be decided by the government later.
The bill outlines the creation of a seven-member welfare board for cine workers and cultural activists, tasked with managing funds from the cess to support social security schemes.
The Karnataka Film Workers Artists and Technicians Union estimates that around 2,355 workers, including artists and technicians, are working in the industry. However, many small-time artists and technicians are not registered with any organisation in the state.
The Karnataka Cine and Cultural Activists (Welfare) Bill of 2024 proposes a phased implementation to minimise the impact on the state budget, stressing the importance of preventing financial strain.