Karnataka To Add 2% Cess On Movie Tickets & OTT Subscriptions To Cover Welfare Cost For Cine Workers

The Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, which creates a fund to support social security programs for state-wide cine and cultural activists, was introduced in the Legislative Assembly on Friday. It also creates a welfare board.

According to the proposed bill, the government would form the Karnataka Cine and Cultural Activists Welfare Board, with the Labour Minister as its chairman and its headquarters located in Bengaluru.

Cess levy for funding the scheme

The proposed bill calls for the imposition of a cess levied on movie tickets and subscription fees on all money received by the associated businesses in the state. "The Cinema and Cultural Activists Welfare Cess" would be the name of the welfare cess.

Film and cultural activists who register with the proposed board would have the right to petition a government-designated office regarding any complaints pertaining to entitlements.

Individuals covered under the bill (proposed)

Any individual working in the film industry as an artist (actor, musician, dancer, etc.) or in any manual, supervisory, technical, artistic, or unskilled capacity is considered a cine and cultural activist. This also applies to people who are involved in activities that the government has declared in connection with this Act," the bill said.

"The Karnataka Chalanachithra Academy, Karnataka Nataka Academy, Karnataka Sangeetha Nruthya Academy, Karnataka Janapada Academy, Karnataka Lalithakala Academy, Karnataka Yakshagana Academy, and Karnataka Bayalata Academy are among the government-approved academies that recognize individuals as cultural and film activists," the bill also stated.

Karnatka's Economy

Karnataka Government 5 guarantees are putting lot of pressure on the fiscal situation. The Siddaramaiah-led Karnataka government is trying to fund their controversial 5 guarantees and newly proposed social security scheme for cinema and cultural activists, with levies on.

Chief Minister Siddaramaiah has put aside Rs 52,000 crore for the execution of five guarantee schemes in fiscal years 2024–2025, namely Shakti, Gruha Jyoti, Gruha Lakshmi, Yuva Nidhi, and Anna Bhagya. Through guarantee schemes, an average of Rs 50,000 to Rs 55,000 is transferred to each family annually.

The Chief Minister has presented a budget with a revenue deficit and net borrowings exceeding Rs 1 lakh crore, despite not raising any taxes.

Karnatka's total liabilities are estimated to be Rs 6,65,095 crore, amounting to 23.68 per cent of GDP. It is projected that the fiscal deficit for 2024–2025 will be Rs 82,981 crore, amounting to 2.95 per cent of GSDP (gross state domestic product).