Karnataka to impose 2% cess on cinema tickets from September 30

The Karnataka government has notified a 2% cess on all cinema tickets, effective September 30, 2026. Enacted under the ‘Cine and Cultural Activists Welfare Act 2024’, the levy aims to establish a welfare fund and board to support technicians, artists, and workers within the cinema and cultural sectors.

The Multiplex Association of India (MAI) has urged the government to reconsider the decision, arguing that the additional levy increases costs for consumers and contradicts the Goods and Services Tax (GST) objective of eliminating cascading indirect taxes. MAI president Kamal Gianchandani stated that the move is counterproductive to efforts aimed at making theatrical entertainment more accessible.

Similarly, the Karnataka Film Chamber of Commerce (KFCC) has expressed strong reservations regarding the 2% rate. Because Karnataka lacks the statutory price caps found in neighboring states like Tamil Nadu or Andhra Pradesh, industry experts expect the additional operational costs and the cess to be passed directly to patrons.