Multiplex Association of India moves Karnataka High Court challenging 2% social cess on cinema tickets

Petitioners argued that the 2% cent fee was essentially a “tax” and did not meet constitutional requirements. | Photo credit: File photo

The Karnataka High Court on Wednesday sought the state government’s reply on a petition challenging the legality of levy of 2% social tax on cinema ticket income under the Karnataka Film and Cultural Activists (Welfare) Act, 2024.

Justice HT Narendra Prasad passed the order on a petition filed by Multiplex Association of India and PVR INOX Ltd.

The petitioners are questioning the action of the state authorities who have recently issued a number of notices and circulars asking the petitioners to collect liquidation with effect from September 1 as per the provisions of the 2024 Act, when the government has not yet issued a notification regarding the effective date of the Act.

Since the 2024 Act received the Governor’s assent on 23 September 2024 and was subsequently gazetted, the petition pointed out that Section 1(2) of the Act specifically provides that it shall come into force only on a date specified by the State Government by notification in the Official Gazette. And no such commencement notice has been issued so far, the petitioners claimed.

Regarding the legality of the law, the petition argued that the state legislature had no power to impose this restriction as Parliament had already passed the Social Security Act, 2020, which falls in the area of ​​social security for workers, including cinema workers.

Petitioners further argued that the 2% levy is essentially a “tax” and does not meet constitutional requirements. The petitioners also questioned the propriety of imposing a tax on multiplexes as they do not have a direct relationship with the cinema and culture workers who should benefit from it.

The next hearing was adjourned to September 10.

Published – 9 Sep 2026 18:59 IST