Cinema tickets and OTT subscriptions were already costly for the common people, but the prices will get a hike soon. Though it won’t be a case for people all over India, the Karnataka government is considering a new tax on OTT subscriptions and theater tickets.
Before you freak out, the tax won’t be the worst thing imposed on you.
The Karnataka government is planning to introduce a new tax on cinema tickets and OTT subscriptions to support film and cultural workers. The Karnataka Cine and Cultural Workers (Welfare) Bill, which was recently tabled in the state Assembly, proposes a welfare cess on these revenues.
The funds raised from this tax will be used to provide social security benefits such as ESI and PF for cine artists and cultural performers, aiming to ensure their financial stability and well-being.
“There shall be levied, a cess on the cinema tickets, subscription fees and all revenue generated from the related establishments in the state, a welfare cess known as ‘the Cine and Cultural Activists Welfare Cess’. The cess shall be at such rates as may be notified by the Government, and it shall not exceed two percent but shall not be less than one percent on cinema tickets, subscription fees and all revenue generated from the Related Establishments.”
But how much will the prices hike?
The number is pretty small as of now. The government is proposing a minimum of 1% and a maximum of 2% of the cost of the subscription and ticket prices, which is probably a negligible increase given the already high prices.
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