📷 Image: Wikimedia Commons / Muhammad Mahdi Karim/ Augustus Binu
Business
Karnataka HC asks State to respond to PVR INOX's challenge against 2% cinema tax
✍️ Bar and Bench
🗓 09 Sep 2026, 02:03 PM
👁 15
The Karnataka High Court has asked the state government to file a reply to a petition by PVR INOX and the Multiplex Association contesting the 2% cinema cess.
The Karnataka High Court has issued a notice to the state government seeking its response to a petition filed by cinema chain PVR INOX and the Multiplex Association. The petition challenges the 2% entertainment cess levied on movie ticket sales in the state.
Petitioners contend that the additional tax, introduced by the state, contravenes constitutional provisions and imposes an undue financial burden on cinema operators and moviegoers. They have asked the court to declare the cess illegal and to order its withdrawal.
The state, represented by its legal counsel, has been allotted a prescribed period to submit its reply. No hearing date has been scheduled yet, and the matter remains pending before the bench.
The dispute arises as the Indian exhibition sector grapples with post‑pandemic revenue pressures and competition from digital streaming platforms, prompting renewed scrutiny of tax policies affecting theatres.
Petitioners contend that the additional tax, introduced by the state, contravenes constitutional provisions and imposes an undue financial burden on cinema operators and moviegoers. They have asked the court to declare the cess illegal and to order its withdrawal.
The state, represented by its legal counsel, has been allotted a prescribed period to submit its reply. No hearing date has been scheduled yet, and the matter remains pending before the bench.
The dispute arises as the Indian exhibition sector grapples with post‑pandemic revenue pressures and competition from digital streaming platforms, prompting renewed scrutiny of tax policies affecting theatres.