The proposal by the Karnataka government to levy a 2 per cent cess on movie tickets and OTT subscriptions has ignited strong opposition from the Kannada film industry, represented by the Karnataka Film Chamber of Commerce (KFCC). The Chamber has expressed grave concerns, arguing that such a tax would impose significant additional burdens on producers, who are already grappling with multiple challenges.
During a press conference, KFCC President NM Suresh pointed out the precarious financial situation of producers and criticised the government's decision as exacerbating their existing difficulties. "Producers are already facing immense challenges, and the state government’s proposal to impose this cess will only worsen the situation," said Suresh. He further urged the Karnataka Chief Minister to reconsider the tax imposition, particularly for Kannada films. "While supporting welfare funds for workers is crucial, it shouldn’t come at the expense of producers," he added.
Umesh Bankar, President of the Producers Association, echoed these sentiments, stressing the adverse impact of the cess on the industry's economic sustainability. In response to the announcement, the KFCC has planned a meeting with the Chief Minister to address their concerns and seek a resolution that safeguards the interests of the industry.
"With 130 out of 637 theatres facing potential closure and declining audience numbers, the introduction of this cess will only exacerbate the industry’s challenges," Suresh further mentioned, concluding with a unified plea from the KFCC urging the government to reconsider its proposal.
