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Karnataka proposes 2% cess on movie tickets, TV channelsThe move is to generate funds for the welfare of cine workers, according to rules notified by Labour Department
Bharath Joshi
Last Updated IST
<div class="paragraphs"><p>The 2 per cent cess will be applicable on cinema tickets of all theatres, including multiplexes, the draft rules state.&nbsp;</p></div>

The 2 per cent cess will be applicable on cinema tickets of all theatres, including multiplexes, the draft rules state. 

Credit: DH File Photo

Bengaluru: The Karnataka government is proposing to levy a 2 per cent cess on movie tickets and television entertainment channels to fund the welfare of cine workers, as per draft rules notified by the Labour Department.

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The draft rules come under the Karnataka Cine and Cultural Activists (Welfare) Act, which was enacted last year.

Under the Act, the government will create the Karnataka Cine and Cultural Activists Social Security and Welfare Fund. The Act states that a 1 to 2 per cent cess on movie tickets and subscription fees will be levied to generate funds.

Going by the draft rules, the government has finalised the rate of cess at 2 per cent.

The 2 per cent cess will be applicable “on cinema tickets of all theatres”, including multiplexes, the draft rules state. Further, a 2 per cent cess will be charged “on total transaction of television entertainment channels operating in the State of Karnataka”.

India’s film industry has 2.2 billion ticket buyers, and people in Karnataka spend Rs 4 crore to watch movies every year, Labour Minister Santosh Lad told the Assembly last year. Lad had said there were 50,000 people working in the cinema industry. The number will be 70,000 if people working in allied sectors are also counted, he added.

According to the draft rules, cine and cultural activists aged 18 to 60 should register with the government. Cine and cultural activists include artists (actors, musicians or dancers) and any person carrying out skilled, unskilled, manual supervisory, technical or such activities.

Registered cine workers will receive a slew of benefits: accident benefit, natural death assistance (inclusive of funeral expenses), funds for children’s education, maternity aid and pension.

Under the Act, the government will establish a Karnataka Cine and Cultural Activists' Welfare Board headed by the Labour Minister. The draft rules state that the board should meet at least once in three months.

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(Published 26 September 2025, 16:34 IST)