Bengaluru: Karnataka High Court seeks reply on 2% cinema ticket cess

Justice H.T. Narendra Prasad has asked the Karnataka government to state whether the Karnataka Cine and Cultural Activists (Welfare) Act, 2024, has come into force, while hearing a challenge to an additional 2% collection on cinema tickets.

The Multiplex Association of India, PVR INOX Ltd and other petitioners have challenged the collection, the Karnataka Cine and Cultural Activists Social Security and Welfare Rules, 2025, and a 2026 amendment to the Act.

The petitioners contend that officials cannot require theatres and multiplexes to collect the amount through circulars and notices because no commencement notification has been issued for the parent Act.

A circular dated August 29 directed theatres and multiplexes across Karnataka to collect an additional 2% on ticket prices from September 1. The petition describes the collection as a cess on cinema-ticket revenue.

The court issued notice to the state government and sought its response on whether the 2024 Act has taken effect.