Karnataka Governor Thaawarchand Gehlot has given his assent to the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, which proposes a cess of up to 2% on movie tickets and OTT subscription fees. This initiative aims to benefit cinema and cultural artists across the state. The Karnataka Assembly passed the bill in July 2024, and it received the Governor’s approval on September 23, 2024.
Imposition of Cine and Cultural Welfare Cess
The Act introduces a ‘Cine and Cultural Activists Welfare Cess’ on cinema tickets, OTT subscription fees, and related revenues. The cess will range between 1% and 2%, with the specific rate being notified by the government. Additionally, the cess will be revised every three years.
According to Mohammad Mohsin, Principal Secretary of the Labour Department, the cess will be applied in conjunction with existing GST charges on cinema tickets. The mechanism for collecting the cess from OTT subscription fees is still being worked out, but it will likely be linked to the GST framework.
Purpose of the Cess
The funds collected through this cess will be transferred to the Karnataka Cine and Cultural Activists’ Welfare Board, which will oversee the distribution and utilization of the money for the welfare of artists. The Welfare Board will consist of members such as the Minister-in-charge of the Department of Labour, the Labour Commissioner, and representatives from the cine industry.
The bill defines “cine and cultural activists” as individuals employed in the cinema field, including actors, musicians, dancers, and workers in technical or supervisory roles. It also covers individuals associated with government-recognized academies, such as the Karnataka Chalanachithra Academy and the Karnataka Sangeetha Nruthya Academy, among others.
A Welfare-Driven Initiative
This legislation follows Governor Gehlot’s return of 11 bills in August 2024, seeking clarifications on five, including the Karnataka Cine and Cultural Artists (Welfare) Bill. The bill is designed to provide a safety net for cinema and cultural professionals, ensuring their financial well-being and recognition through this dedicated cess.
With strong backing from the Labour Department, the cess will support individuals contributing to Karnataka’s rich cinematic and cultural heritage.
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