The record
Written from the 1 report below. Nothing here is unsourced.
- Karnataka will impose an additional cess of up to 2 percent on movie tickets from September 30.
- The Multiplex Association of India has raised concerns that the cess could make a cinema outing less affordable for consumers.
- The association said the levy comes at a time when the exhibition industry is trying to encourage audiences to return to theatres.
- The MAI argued the cess on tickets already subject to GST could create a tax-on-tax effect that the GST regime sought to eliminate.
- The association plans to continue engaging with the Karnataka government to find a solution that protects consumer affordability and the growth of the cinema sector.
What to watch next
- Whether the Karnataka government responds to the MAI's concerns before the September 30 rollout.
- Whether the MAI engages the government into any change or rollback of the cess.
- How the new levy affects actual ticket prices once implemented, since exact increases were not specified.
Who said what1
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Kamal Gianchandani
president of the Multiplex Association of India
1 quote · 1 outlet
“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”
In the article
…particularly as cinema tickets are already subject to GST. However, the association's statement did not specify the final amount a consumer would pay on a ticket after the cess is implemented, PTI reported. " 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. The MAI said the proposed levy also runs contrary to the objective of GST, which was introduced to establish a unified indirect tax framework and reduce the cascading effect of…
Coverage1
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Named India · Multiplex Association of India · Kamal Gianchandani · Karnataka
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