BENGALURU: The state government on Thursday informed the Karnataka High Court that it has withdrawn the circular issued to levy a 2 percent cess on the revenue generated from cinema tickets, by an office order dated September 9.
The government has also informed that it has not yet notified the appointing date of the Karnataka Cine and Cultural (Welfare) Act, 2024 in the official gazette, under which the impugned circular was issued.
The state government filed a memo along with the order of withdrawal before Justice HT Narendra Prasad, who was hearing the petition filed by the Multiplex Association of India and others challenging the circular order dated August 29.
Taking note of the state’s submission on record, the court quashed the impugned circular and related notices, while disposing of the petition. The petitioners have contended that the state cannot levy the cess through the circulars when the parent Act is not yet given effect. The state legislature had passed the Act, which got assent from the Governor in September 2024.