The Karnataka government is contemplating the introduction of a cess on cinema tickets and Over-the-Top (OTT) subscription fees aimed at supporting cinema and cultural artists within the state.
This proposed cess will vary between 1 to 2 percent and will undergo a review by the state government every three years. It is intended to be levied on revenue generated from cinema tickets, subscription fees, and related establishments operating within Karnataka.
Additionally, the legislative proposal includes provisions for the establishment of a seven-member welfare board tasked with managing a fund designed to finance social security and welfare schemes for artists. According to the bill, individuals engaged in various capacities within the film industry, including artists, musicians, dancers, and those in technical roles, will be classified as cinema and cultural activists eligible for welfare benefits.
The scope of the cess may also extend to include theatrical plays performed within the state, expanding its coverage across various cultural activities.
However, the proposal has faced criticism from the BJP, with spokesperson Shehzad Poonawala denouncing it as detrimental to the interests of Karnataka residents.
To mitigate the financial impact on the state budget, the bill outlines a phased implementation strategy. It mandates employers to remit the cess monthly and submit biannual returns through an online platform or designated web portal.
If the bill receives approval, the Karnataka Cinema and Cultural Artists Welfare Board will be established in Bengaluru, chaired by the department minister and a senior IAS official. This board will comprise seventeen members appointed by the government, representing diverse cultural sectors and academies, to oversee the implementation and administration of welfare initiatives for artists across the state.
