The Karnataka government is planning to introduce a new tax on movie tickets and OTT subscriptions to support film and cultural workers.
The Karnataka Cine and Cultural Workers (Welfare) Bill, presented in the state Assembly on Friday, proposes a 1% to 2% tax.
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The funds collected will be used for social security benefits like ESI and PF for cine artists and cultural performers.
“There will be a tax on cinema tickets, subscription fees, and all revenue from related establishments in the state, called the ‘Cine and Cultural Activists Welfare Cess.’ This tax will be set by the Government and will be between one and two percent,” according to the Bill.
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This initiative comes shortly after the Karnataka government faced controversy over the Kannadiga job reservation bill. This bill, which requires 50% reservation for administrative and 75% for non-administrative posts in private sector jobs, has faced significant backlash. Chief Minister Siddaramaiah announced on Wednesday that the bill is temporarily on hold.
Additionally, there is criticism that the state is incurring huge losses due to the free bus scheme for women and is now imposing taxes on cinema lovers to compensate as they are easy targets.
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