Karnataka government's new bill imposes cess on TV and OTT services to fund cultural activists
The cess will be applied to cinema ticket sales and subscription fees from services in the state. Companies will be required to remit this cess by the 9th of each month. The revenue collected from this cess is intended to provide financial aid to cine and cultural activists, including artists, technicians, and other workers in Karnataka's cultural sector.
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FollowKarnataka government on Friday (July 26) passed the Karnataka Cine and Cultural Activists Welfare Bill, a new piece of legislation designed to enhance support for the state's entertainment industry. The bill introduces a cess of up to 2% on the revenues generated by TV channels, OTT platforms, and multiplexes operating within Karnataka.
The cess will be applied to cinema ticket sales and subscription fees from services in the state. Companies will be required to remit this cess by the 9th of each month. The revenue collected from this cess is intended to provide financial aid to cine and cultural activists, including artists, technicians, and other workers in Karnataka's cultural sector.
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The bill defines "Cine and Cultural Activists" broadly, encompassing anyone employed in the field of cinema or related activities, including actors, musicians, dancers, and those engaged in various skilled and unskilled roles. The Karnataka Cine and Cultural Activists' Welfare Board will be established under the bill to handle the registration of cinema workers, develop welfare schemes, and address grievances.
This new legislation is part of a series of recent initiatives by the Karnataka Government. Earlier this week, the state cabinet approved "The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024," which aimed to reserve up to 75% of private sector jobs for locals. However, due to industry backlash, the government quickly withdrew the bill.
The state government is also preparing to introduce The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024, in the ongoing session of the state legislature. This bill, which was placed in the public domain last month for stakeholder feedback, aims to address the welfare needs of gig workers.
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