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Karnataka cinema ticket cess may make movie outings costlier, says MAI
The Multiplex Association of India has opposed Karnataka's planned 2 per cent cess on cinema tickets from 30 September. It says the levy will raise prices, weaken affordability and undercut theatre recovery efforts.
The Multiplex Association of India has voiced concern over the Karnataka government's decision to impose an additional cess of up to 2 per cent on cinema tickets from 30 September. The industry body said the move would make movie outings costlier for consumers at a time when cinemas are trying to bring audiences back to theatres.
In a statement issued on Thursday, the association said the proposed levy goes against efforts to keep theatrical entertainment accessible and could hurt affordability for families and young people. It also said the move runs counter to the wider goal of simplifying taxation and making it easier to do business.
"At a time when the government has been pursuing tax rationalisation and ease of doing business, introducing an additional levy on cinema tickets is counterproductive and ultimately places an additional burden on the consumer. Cinema is a mass entertainment medium enjoyed by millions of families and young people, and every additional tax makes the experience less affordable," MAI president Kamal Gianchandani said.
He said the proposed cess also went against the GST objective of removing cascading indirect taxes, which was one of the main reasons for introducing the Goods and Services Tax. GST was meant to create a single indirect tax framework and reduce the cascading effect of multiple taxes and levies across the value chain.
"An additional cess imposed on a transaction that is already subject to GST risks creating precisely the kind of tax-on-tax effect that the GST regime sought to eliminate. MAI believes that the taxation framework should instead move towards greater simplicity, transparency and predictability for both consumers and businesses," the statement said.
The association said it would continue engaging with the Karnataka government and other stakeholders to find a solution that supports the welfare of the creative community while protecting consumer affordability and the long-term growth of the cinema exhibition sector. The statement did not mention details of the current cess on cinema tickets in the state.