📷 Image: Wikimedia Commons / Muhammad Mahdi Karim/ Augustus Binu
Entertainment
Karnataka Government Declines to Penalise Cinema Exhibitors Over 2% Ticket Cess
✍️ barandbench.com
🗓 30 Sep 2026, 02:38 PM
👁 11
The Karnataka state told the High Court it will not take punitive action against cinema owners for the 2% ticket cess levied on film admissions.
Karnataka's government appeared before the Karnataka High Court to address concerns raised by cinema exhibitors over a 2% cess imposed on movie tickets. The state clarified that it does not intend to initiate any punitive proceedings against theatre owners for collecting or passing on the levy.
The 2% ticket cess, introduced as a revenue measure for the state, has been a point of contention among exhibitors who argued that it could affect ticket pricing and audience footfall. However, the government's response emphasized that the cess is a statutory charge and that compliance does not warrant legal action.
Legal counsel for the exhibitors had sought a directive to halt enforcement of the cess, but the state's submission indicated that the existing framework remains valid and that no further intervention will be taken. The matter is now pending further judicial review.
The decision underscores the state's stance on maintaining the cess as a fiscal tool while avoiding punitive measures that could disrupt the cinema industry's operations in Karnataka.
The 2% ticket cess, introduced as a revenue measure for the state, has been a point of contention among exhibitors who argued that it could affect ticket pricing and audience footfall. However, the government's response emphasized that the cess is a statutory charge and that compliance does not warrant legal action.
Legal counsel for the exhibitors had sought a directive to halt enforcement of the cess, but the state's submission indicated that the existing framework remains valid and that no further intervention will be taken. The matter is now pending further judicial review.
The decision underscores the state's stance on maintaining the cess as a fiscal tool while avoiding punitive measures that could disrupt the cinema industry's operations in Karnataka.