BENGALURU: The Multiplex Association of India (MAI) has urged the Karnataka government to reconsider its decision to levy an additional cess of up to 2% on cinema tickets from September 30, calling the move an additional burden on consumers.
In a statement, MAI said the cess would increase the cost of cinema outings at a time when the industry is seeking to make theatrical entertainment more accessible and encourage audiences to return to cinemas.
MAI President Kamal Gianchandani said the additional levy was counterproductive as the government pursued tax rationalisation and ease of doing business. He said cinema was a mass entertainment medium and additional taxes could make it less affordable.
The association also argued that the proposed cess was contrary to the objective of the Goods and Services Tax (GST), which was introduced to create a unified indirect tax framework and reduce the cascading effect of multiple taxes and levies.
According to MAI, imposing an additional cess on a transaction already subject to GST could result in a tax-on-tax effect, which GST was intended to eliminate. It called for a taxation framework that is simpler, transparent and predictable for consumers and businesses.
The association said the cinema exhibition industry contributes to the state’s economy through employment and supports an ecosystem including filmmakers, distributors, production companies, mall operators, food and beverage businesses, and technology providers.
MAI Managing Director Devang Sampat said the industry recognised the need to support artists and cultural workers but argued that increasing the burden on cinema-going consumers was not the appropriate way to fund welfare initiatives.
The association said it remained willing to engage with the state government and stakeholders to explore alternative mechanisms for supporting the creative community.