Theatre owners and streaming services are concerned about the proposed karnataka Cine and Cultural Activists (Welfare) Bill, 2024. In order to help cinema workers and cultural activists, the law adds a 2% levy to movie tickets and OTT subscriptions. Despite the tiny price, there are worries that it would increase viewer fees, which might negatively impact already struggling movie theatres and streaming services.
 
 Additionally, there is concern that similar levies may be adopted by other jurisdictions, further straining the business. According to experts, this additional cost is just one more hassle at an already difficult time for the sector. As they see it, the emphasis should be on measures that increase employment and growth rather than placing further burden on the budget.

According to analysts, this charge would end up costing the sector ₹55 crore annually. Legal experts point out that although such fees have been imposed in the past, this is the first instance in which OTT platforms are impacted. It's possible that other states may take Karnataka's lead and create more widespread problems.
 
There are worries that this charge can lead to misunderstandings and legal issues as well, particularly because OTT providers already have to pay GST. Insiders in the broadcast sector also cautioned that, given the fact that many services operate or bill from outside of karnataka, this levy may be viewed as double taxation and may be challenged in court.
 
 
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G GOWTHAM

06/08/2024 11:24 AM