The Karnataka state government has suggested a new one to two percent tax on cinema tickets and Over-the-Top (OTT) subscription fees to help film and cultural workers. This charge will be used to support social security benefits such as ESI and PF for cine artists and cultural performers under the Labour Ministry’s Karnataka Cine and Cultural Activists (Welfare) Bill 2024. The Karnataka Cine and Cultural Workers Welfare Bill, 2024, was introduced in the Assembly on Friday. The Cess ranges from 1% to 2%; the exact rate will be determined by the government later.
Mohammad Mohsin, Secretary of the Labour Department, has stated that the cess will be extended to theatrical productions produced in the state. The board will use the cess proceeds to fund social security plans for film workers. The measure establishes a seven-member welfare board for film professionals and cultural activists, which will be in charge of handling cess revenues for social security schemes.
The Karnataka Film Workers Artists and Technicians Union estimates that approximately 2,355 people, including artists and technicians, work in the sector. However, many small-time artists and technicians are not registered with any state body. Mohsin stated that conversations are underway to determine if OTT subscriptions will be included, with a focus on OTT works from the local film industry.
According to the proposal submitted in the assembly, each registered member will be issued a unique ID card in order to obtain benefits. There is also confusion regarding how the cess would be levied on OTT subscriptions, which are often controlled through online platforms without physical addresses.
The Karnataka Cine and Cultural Activists (Welfare) Bill of 2024 suggests a phased implementation strategy to reduce the impact on the state budget, emphasizing the significance of avoiding financial hardship. If passed, the bill will create the Karnataka Cinema and Cultural Artists Welfare Board in Bengaluru, chaired by the department minister and a senior IAS official, with seventeen government-nominated members representing various cultural sectors and academies. (ANI)