Karnataka Govt Plans 2% Extra Tax On Cinema Tickets, Netflix, Prime Users


Mohul Ghosh

Mohul Ghosh

Jul 21, 2024


The Karnataka Labour Department has introduced the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, in the state legislature. This initiative, presented by Labour Minister Santhosh Lad, aims to provide social security for film artists and cultural activists. The bill was introduced amid protests by the Opposition BJP over a scam in the state ST welfare fund.

Karnataka Govt Plans 2% Extra Tax On Cinema Tickets, Netflix, Prime Users

Defining Cine and Cultural Activists

The bill defines “Cine and Cultural activists” as individuals employed in the cinema industry, including actors, musicians, dancers, and other skilled or unskilled workers. It also covers those engaged in related activities as declared by the government. The legislation seeks to support these individuals through various welfare schemes and grievance redressal mechanisms.

Establishment of a Welfare Board

One of the bill’s key provisions is the creation of the Karnataka Cine and Cultural Activists’ Welfare Board. This board will be responsible for registering cinema workers, creating welfare schemes, and addressing grievances. It is designed to ensure that those working in the cinema and cultural sectors have access to necessary social security benefits.

Creation of a Social Security and Welfare Fund

Another significant provision is the establishment of the Karnataka Cine and Cultural Activists Social Security and Welfare Fund. This fund will be financed through a cess on cinema tickets, subscription fees, and all revenue generated from related establishments in the state. The cess will range between one and two percent, aiming to create a substantial fund for welfare activities.

Penal Provisions for Non-compliance

The bill includes penal provisions for employers who contravene its provisions or fail to comply with the rules. Penalties can extend up to ten thousand rupees for the first contravention and up to one lakh rupees for subsequent contraventions, ensuring adherence to the new regulations.

Context of Recent Legislative Activities

This bill is the third introduced by the Karnataka Labour Department in recent weeks. Earlier, the state cabinet cleared the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, to reserve up to 75 percent of jobs in the private sector for locals. However, this proposal was withdrawn after backlash from industries.

Upcoming Welfare Bill for Gig Workers

In addition to the welfare bill for film artists, the Karnataka Government is expected to table the Karnataka Platform Based Gig Workers (Social Security and Welfare) Bill, 2024, in the monsoon session. This bill proposes the creation of a welfare board and fund for gig workers, funded by a welfare fee collected from aggregators. The fund will also receive contributions from the state and workers.

Conclusion

The introduction of the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, reflects the state’s commitment to providing social security for diverse worker groups. Amid ongoing legislative activities, these initiatives aim to address the welfare needs of various sectors, including film artists, cultural activists, and gig workers, ensuring comprehensive support and security for these communities.

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Mohul Ghosh
Mohul Ghosh
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