2% cinema ticket cess: State government assures Karnataka High Court of no coercive action against petitioners for now
On Wednesday, the High Court of Karnataka heard petitions challenging the constitutionality of a newly introduced 2% cess on cinema ticket prices under the Karnataka Cine and Cultural Activists (Welfare) Act, 2024. The court recorded the state government's assurance that no coercive action would be taken against the theatre operators challenging the Act until the next hearing.
The petitions, filed by the Multiplex Association of India, PVR INOX, and Vinayaka Chitramandira Theatre, questioned the government's legislative competence to impose the cess and its lack of direct connection to the beneficiaries of the welfare fund. The court did not issue any interim orders, including staying the operation of the Act, which came into effect on September 30.
The protection from coercive action applies only to the petitioners, and their case will be heard again on October 26.
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