MAI urges Karnataka govt to reconsider two pc cess on cinema tickets

Bengaluru, Sep 17 (PTI) The MAI on Thursday expressed its concern over the Karnataka government’s decision to levy an additional maximum of two per cent cess on cinema tickets in the state from September 30.

In a statement, the Multiplex Association of India (MAI) expressed its apprehension that imposing an additional levy on movie tickets will directly increase the cost of a cinema outing for consumers at a time when the industry is working to make theatrical entertainment more accessible and encourage audiences to return to cinemas.

“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 runs contrary to the GST objective of eliminating cascading indirect taxes, which was one of the fundamental objectives behind the introduction of the Goods and Services Tax (GST).

GST was designed to create a unified 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 read.

MAI said it will remain committed to engaging with the Karnataka government and all 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.

Details of the current cess on cinema tickets in the state were not mentioned in the statement. PTI GMS GMS KH

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