Producers and exhibitors across the state feel that the Karnataka Cine and Cultural Workers (Welfare) Bill, 2024, which proposes a cess of up to 2% on film tickets and OTT subscription fees, will have a negative impact on the film industry. will

The Karnataka Cinema and Cultural Workers (Welfare) Act, 2024 proposes to levy a cess of up to two per cent on movie tickets and OTT subscription fees for the benefit of cinema and ‘cultural artists’.

DH Spoke to producers and cinema exhibitors to get their perspective on how the latest proposal will affect the industry.

Karnataka Film Exhibitors Association President KV Chandrasekhar said this DH“Additional cess will affect the revenue of the industry. We pay GST on ticket sales and an additional cess on top of that will reduce our margins. We provide ESI and provident funds for workers. The government could enroll the children instead. Among them, the workers attend government schools for free.”

Karnataka Film Exhibitors Federation Chairman RR Odugudar explained. DH“We will have to absorb the cost of this cess because we cannot charge the customer. The industry will have a hit on its revenue because of this. The public and the exhibitors are expected to absorb the cost.”

Television and film producer SV Sivakumar opined, “OTT platforms will not be able to absorb the cost as there are very few takers for Kannada OTT. Consumers will have to bear the cost of this cess. However, if The money collected from cess reaches the right people, which is a welcome move.”

Karnataka Film Chamber of Commerce president and veteran producer NM Suresh also said that he was very unhappy with the decision. Expressing regret, he said that even after we objected to this move, the government did not listen to us.