Karnataka Government Introduces Welfare Bill Imposing Cess on TV Channels, OTT Platforms, and Multiplexes

The Karnataka government has passed the Karnataka Cine and Cultural Activists Welfare Bill on July 26, 2024, aimed at supporting the entertainment sector by introducing a new cess on TV channels, OTT platforms, and multiplexes operating within the state. The bill, as reported by CNBC-TV18, seeks to provide financial aid to cine and cultural activists, thereby enhancing the welfare of individuals working in Karnataka’s cultural industries.

The legislation imposes a cess of up to 2% on the revenues of TV channels and OTT services derived from Karnataka. This cess will be applied to cinema tickets and subscription fees, ensuring that it is paid based on the revenue generated within the state. Companies are required to remit the cess by the 9th of every month, as mandated by the bill.

The primary objective of this initiative is to bolster financial support for the state’s cultural sector. By directing the collected funds towards cine and cultural activists, the Karnataka government aims to improve the livelihoods of those involved in the cultural and entertainment industries.

The introduction of this cess marks a significant step in recognizing and addressing the financial challenges faced by individuals in the cultural sector. It is expected to provide much-needed relief and support, ensuring the continued growth and sustainability of Karnataka’s vibrant cultural landscape.