PVR, Multiplex Association File Petition Against 2% Cess, Karnataka HC Seeks State Response

PVR and the Multiplex Association have filed a petition in the Karnataka High Court challenging a 2% cess imposed on multiplexes as part of the state's entertainment tax. The court has asked the Karnataka government to provide a response to the petition. The 2% cess, introduced to raise revenue from the growing multiplex sector, has been contested by industry players who argue it is arbitrary and may affect the sector's growth. The High Court's order signals a potential legal review of the tax policy. The outcome could influence future tax regulations for entertainment venues across the state.