The New Indian Express ·
Karnataka HC seeks response on 2% cinema cess
BENGALURU: The Karnataka High Court sought a response from the state government on the petition challenging the levy of a 2 percent cess on the revenue generated from cinema tickets, under the Karnataka Cine and Cultural (Welfare) Act, 2024.
Justice HT Narendra Prasad passed the order to issue notice to the state government after hearing the petition filed by Multiplex Association of India and others.
Contending that the state cannot levy the cess through the circulars when the parent Act is not yet given effect, the petitioners counsel contended that the state legislature had passed the Act for which got assent from the Governor.
However, a provision of the Act specifically provides that it would come into force only on a date appointed by the state government through a notification in the official gazette. But no such notification has been issued even though a circular has been issued to levy cess, he argued.