Karnataka imposes 2% cess on movie tickets, TV channels for cine workers’ welfare

Term covers not just actors, musicians, and dancers, but also individuals engaged in skilled, unskilled, manual, or supervisory roles.

Published Sep 28, 2025 | 11:49 AMUpdated Sep 28, 2025 | 11:49 AM

Representational image. Credit: iStock

Synopsis: The Karnataka government’s draft rules, dated 24 September 2025, impose a 2% cess on movie tickets and TV channel transactions to fund cine workers’ welfare. The cess, collected quarterly, supports a social security fund for registered cine and cultural workers aged 18–60, offering benefits like accident coverage, educational support, maternity aid, and pensions.

The Karnataka government has released draft rules to impose a 2 percent cess on movie tickets and TV channels. The proceeds will be earmarked for cine workers’ welfare.

“The draft of the Karnataka Cine and Cultural Activists Social Security and Welfare Rules, 2025 which the Government of Karnataka proposes to make in exercise of the powers conferred by section 21 of the Karnataka Cine and Cultural Activists (Welfare) Act, 2024 (Karnataka Act 46 of 2024) is hereby published as required by sub-section (1) of the said section for the information of all the persons likely to be affected thereby…”

The notification, dated 24 September, states that a 2 percent cess will be levied on movie tickets from both single screens and multiplexes. Similarly, a 2 percent cess will be imposed on the total transaction amount from TV channels in Karnataka.

Also Read: Karnataka High Court stays move to cap movie tickets at Rs 200

Levying, assessment, and collection of cess from establishments notified by the government from time to time will be done in such manner, or such time, and such intervals as notified in the official gazette.

The cess shall be collected by the government and transferred to the Board quarterly.

Act provides for creation of a dedicated social security fund which will be financed through the collected cess on movie tickets and subscription fees.

Cine and cultural workers between ages of 18 and 60 are required to register with the government. Term covers not just actors, musicians, and dancers, but also individuals engaged in skilled, unskilled, manual, or supervisory roles.

Registered cine workers are entitled to a range of benefits, including accident coverage, assistance in case of natural death (with funeral expenses), educational support for children, maternity aid, and pensions.

The Act defines a “Cine and Cultural Activist” as – “any person employed in the field of cinema to work as an artist (including actor, musician, or dancer) or to perform any work — skilled, unskilled, manual, supervisory, technical, artistic, or otherwise — or any person engaged in other activities as declared by the government.”

Background

The High Court of Karnataka passed an interim order on Tuesday, 23 September, staying the Karnataka Cinemas (Regulation) (Amendment) Rules 2025, which caps movie ticket prices at ₹200.

Also Read: No care for court! Tickets for Pawan Kalyan’s OG sold at inflated prices despite Telangana HC order

Justice Ravi V Hosmani stayed the amendment until the court passes its final judgement.

The Multiplex Association of India and others opposed the Karnataka Cinemas (Regulation) (Amendment) Rules 2025, saying a provisio added to it was arbitrary.

Senior Advocate Mukul Rohatgi, who appeared for the Association, questioned the basis for fixing the maximum ticket rate at ₹200.

(Edited by Amit Vasudev)

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