- Movie tickets will be cheaper in this state!
- Due to a decision of the High Court, the rates fell directly
- Why was 2% tax imposed?
Movie Tickets To Get Cheaper : There is a sweet news for movie lovers. Now you will be able to watch movies to your heart's content. Because the ticket prices are going to decrease. The High Court gave a direct ruling and that has affected the price. Which is the state where the ticket price has been reduced. And let's know in detail how many tickets will be available. ( Movie Tickets To Get Cheaper
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If you live in Karnataka and are a movie buff, this benefit is for you. Recently, the Karnataka High Court struck down the 2% additional tax levied on tickets in theaters and multiplexes. The court said that the law under which this tax was levied has not yet been officially enacted. Therefore, such a tax cannot be imposed on the audience unless the law is enacted.
Challenging government orders
The case involved a petition filed by Multiplex Association of India, PVR Inox Limited and its shareholder, Shantanu Pai. They had challenged the 2% tax levied on tickets and the government orders issued to collect it.
Why was 2% tax imposed?
In fact, the Karnataka government had proposed to set up a welfare fund for workers in the film and cultural sector under the 2024 Act. The fund was to be raised by levying a 1% to 2% tax on revenue from cinema tickets and certain other services.
But this scope also includes revenue from television channels and OTT platforms. Consequently, the petitioners argued that tax collection cannot be achieved through circulars or administrative orders alone, unless the Act is officially implemented.
What did the government order?
The Karnataka government issued a circular on August 29 directing theaters and multiplexes in the state to levy an additional 2% tax on ticket prices from September 1. The petitioners argued in the court that since the 2024 Act is yet to come into effect, this additional charge cannot be levied on the consumers merely on the basis of a government circular. During the hearing, the Karnataka government informed the court that the order issued on August 29 had been withdrawn on September 9.
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