The Karnataka government is exploring the introduction of a cess on movie tickets and OTT subscription fees to support cinema and cultural artists. The proposed cess, ranging from 1 to 2 percent, will be adjusted every three years and will apply to cinema tickets, subscription fees, and revenue from related establishments within the state.

On Friday, the Karnataka Assembly was presented with the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024. This legislation aims to establish a seven-member welfare board and create a fund to finance schemes providing social security and welfare for artists.

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Under the bill, cine and cultural activists are defined broadly, encompassing anyone working in the film industry as an artist (such as actors, musicians, and dancers) or in any manual, supervisory, technical, artistic, or unskilled role. This definition also includes individuals involved in activities specified by the government in relation to the Act.

In addition to cinema and OTT platforms, the state government plans to extend the cess to theatrical plays performed within Karnataka, according to officials. This measure is intended to enhance support for the state’s vibrant cultural and artistic community.

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