Karnataka govt’s 2% cess on OTT subscriptions raise legal concern

The Karnataka government’s proposal to impose a 2% cess on OTT subscriptions and movie tickets has sparked legal and industry concerns. The Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, approved by Governor Thawarchand Gehlot on September 23, introduces this cess to support local cinema and cultural artists.

While applicable to cinema halls, extending it to OTT platforms presents challenges, as these services are nationwide, with OTTs falling under central jurisdiction, making the cess challenging to enforce and potentially leading to higher subscription costs.
BCS Bureau