Multiplex Association of India moves Karnataka High Court challenging 2% welfare cess on movie tickets
The Multiplex Association of India has challenged a 2% welfare cess on movie tickets in the Karnataka High Court, arguing that the state government lacks the legal authority to impose it. The petitioners claim the government failed to issue the necessary gazette notification to enforce the act.
Why it matters
This legal battle highlights the tension between state-level welfare initiatives and national labor laws, impacting the financial operations of cinema chains.
The High Court of Karnataka on Wednesday sought the State government’s response to a petition challenging the legality of levy of a 2% welfare cess on cinema ticket revenues under the Karnataka Cine and Cultural Activists (Welfare) Act, 2024.
Justice H.T. Narendra Prasad passed the order on a petition filed by the Multiplex Association of India and PVR INOX Ltd.
The petitioners have questioned the actions of the State authorities, who have recently issued a series of notices and circulars asking the petitioners to collect cess with effect from September 1 under the provisions of the Act of 2024, when the government has not yet issued gazette notification announcing the date from which the Act would come into force.
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