Bengaluru: The state government has defended its plan to levy a cess on movie tickets to fund the welfare of cine workers. Governor Thaawarchand Gehlot has returned a Bill in this regard seeking clarification.
Under the Karnataka Cine and Cultural Activists (Welfare) Bill, the government has proposed levy a cess of 1-2% on movie tickets, subscription fees and all revenue generated from related establishments in the state. The Bill seeks to constitute a Karnataka Cine and Cultural Activists’ Welfare Board.
The cess money and other grants will flow into a Karnataka Cine and Cultural Activists Social Security and Welfare Fund.
Gehlot had sought clarification from the Labour Department on whether the cess will be levied on GST too. The Governor also mentioned objections to the Bill by the Indian Broadcasting and Digital Foundation (IBDF).
Speaking to DH, Labour Minister Santhosh Lad said: “It’s clear that the Governor has not read the Bill. Since it’s a Bill not even opposed by the BJP, it only shows lack of application of mind by the Governor. He sought to know whether there is a cess on GST and we have answered back that it’s only on cinema tickets.”
It is one of the five bills for which the state government has sent its clarifications to the Raj Bhavan. Earlier, the ongoing tussle between the state government and the Raj Bhavan had exacerbated after the Governor sent back 11 bills passed by both Houses of the legislature.
The Karnataka Cine and Cultural Activists (Welfare) Bill was one of the 11 Bills that Raj Bhavan returned to the government, worsening tension after Gehlot sanctioned Chief Minister Siddaramaiah’s prosecution and investigation in the alleged MUDA scam.
Raj Bhavan’s decision on the government’s stance over levying cess on movie tickets could have a bearing on the much-debated Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, which is being drafted.
Under the proposed law, which was the Congress’ manifesto promise, the government will levy a cess to fund the welfare of gig workers. This cess will be on either the individual transaction amount or the company’s (aggregator) turnover.