Karnataka movie tickets to cost more from September 30: What the new 2% discount means for audiences

Cinema-goers in Karnataka could pay more for movie tickets from September 30 when an additional discount of up to 2% is set to come into effect in the state, news agency PTI reported.

In practice, the proposed fee could add to the amount consumers pay for a cinema ticket, although the exact increase for an individual ticket cannot be ascertained from the details released by the Multiplex Association of India (MAI). The industry body raised concerns that the extra charge could make a trip to the cinema less affordable for consumers.

The MAI on Thursday expressed concern over the Karnataka government’s decision to impose additional cess. She said the move comes at a time when the movie theater industry is trying to make theatrical entertainment more affordable and encourage moviegoers to return to theaters.

What does the new cess mean for moviegoers?

The proposed measure would be an additional fee for cinema tickets. As a result, moviegoers could see the overall cost of their cinema visits increase once the charge comes into effect on September 30.

MAI argued that even an additional charge could affect affordability, especially since cinema tickets are already subject to GST. However, the association’s statement did not specify the final amount a consumer would pay for a ticket after the implementation of cess, PTI reported.

“At a time when the government is seeking to rationalize taxes and ease of doing business, introducing an additional charge on cinema tickets is counterproductive and ultimately places an additional burden on consumers. Cinema is a mass entertainment medium enjoyed by millions of families and young people, and any additional tax makes the experience less accessible,” said MAI President Kamal Gianchandani.

Why is the multiplex industry opposed?

The MAI said the proposed levy is also against the objective of GST, which was introduced to create a unified indirect tax framework and reduce the cascading effect of multiple taxes and levies across the value chain.

The association said imposing an additional cess on a transaction already subject to GST could lead to what it described as a tax-on-tax effect.

“An additional cess imposed on a transaction already subject to GST risks creating exactly the kind of tax effect that the GST regime sought to eliminate. MAI believes that the tax framework should instead move towards greater simplicity, transparency and predictability for both consumers and businesses,” it said in a statement.

What did MAI say?

The association said it will continue to work with the Government of Karnataka and other stakeholders to find solutions that promote the well-being of the creative community while protecting consumer affordability and the long-term growth of the cinema screening sector.

MAI’s objection centers on the potential impact of the additional fee on both consumers and the film industry.

When will the relief come into effect?

An additional discount of maximum 2% on cinema tickets is set to apply in Karnataka from September 30.

The MAI statement did not provide details on the current cess applicable for cinema tickets in the state. It also did not specify how much the final ticket price for consumers would increase under the new fee.