Karnataka film chamber opposes govt move to levy up to 2% cess

Bengaluru, Jul 27 (PTI) With 130 out of 637 theatres in Karnataka on the verge of closure and the audience number dwindling by the day, the decision of the Karnataka government to levy up to 2 per cent cess will only worsen the industry's challenges, N M Suresh, president of the Karnataka Film Chamber of Commerce said on Saturday.

Suresh was addressing a press conference called to express strong opposition to the Karnataka Cine and Cultural Activists (Welfare) Bill 2024, which proposes up to 2 per cent cess on movie tickets and OTT subscription fees. The Bill was passed by the government during the Assembly session on July 23.

The council had given its nod to the Bill earlier and now, once the Governor agrees, the Bill will become law.

But Suresh said representatives of Karnataka Film Chamber of Commerce (KFCC) will meet Chief Minister Siddaramaiah to discuss the issue further.

"We have already appealed to the CM to reconsider and reduce the tax, especially for Kannada films. We have been invited to the CM’s house and we are planning to discuss in detail not only the cess but also the taxation for theatres and the lack of subsidies for Kannada films," Suresh told PTI later.

While passing the Bill, the government had announced that the cess collected will be used for the benefit of the labourers involved in the production of films.

However, according to Suresh, the government’s decision to create a workers' welfare fund is commendable, but this should not come at the expense of producers.

"You have to remember that people are investing their money. They have to get back their investment for the industry to thrive," Suresh said.

He said at present producers investing in Kannada films are struggling to make profits.

"Considering Kannada cinema plays a vital role in preserving our language and culture, they should, in fact, be encouraged more. Alternative programmes should be considered for workers' welfare," added Suresh. PTI JR SS