📷 Image: Wikimedia Commons / Muhammad Mahdi Karim/ Augustus Binu
Business
Karnataka HC asks state to respond to multiplexes' challenge on 2% cinema cess
✍️ The Economic Times
🗓 09 Sep 2026, 09:48 PM
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The Karnataka High Court has asked the state government to submit its response to petitions filed by multiplex operators seeking a review of the 2% cinema cess.
The bench of the Karnataka High Court issued a notice to the state government, seeking its official reply to petitions filed by a consortium of multiplex cinema owners. The petitions challenge the imposition of a 2% cess on cinema tickets, arguing that the levy is burdensome and affects the viability of multiplex operations.
The multiplexes contend that the cess, introduced as a revenue measure, has not been justified with clear benefits to the film industry or audiences. They have requested the court to either waive the tax or direct the government to reconsider its rate.
The state government, through its legal counsel, is expected to file a response outlining its rationale for retaining the cess, which contributes to the state’s fiscal resources. The matter will be heard in subsequent hearings, with the court likely to issue further directions based on the submissions.
The multiplexes contend that the cess, introduced as a revenue measure, has not been justified with clear benefits to the film industry or audiences. They have requested the court to either waive the tax or direct the government to reconsider its rate.
The state government, through its legal counsel, is expected to file a response outlining its rationale for retaining the cess, which contributes to the state’s fiscal resources. The matter will be heard in subsequent hearings, with the court likely to issue further directions based on the submissions.