Cinema Ticket Prices Hiked in Karnataka

Karnataka is set to impose an additional 2% welfare cess on cinema tickets from September 30. The levy is intended to create a welfare fund for workers and artists associated with the cinema and cultural sectors. It will apply to tickets sold at both multiplexes and single-screen theatres. For instance, a ₹300 ticket would attract an additional ₹6 as cess if the full 2% is passed on to the customer.

The Multiplex Association of India (MAI) has opposed the move, arguing that the additional levy could increase ticket prices and make movie outings less affordable, potentially affecting theatre footfall. The association has also raised concerns about a possible “tax-on-tax” effect because cinema tickets are already subject to GST. MAI has urged the Karnataka government to reconsider the decision and said it is examining legal options. Details on the final mechanism for collecting the cess are still awaited.