The Karnataka High Court has issued notice to the state government and the Labour Department on a petition challenging the constitutional validity of a 2% cess imposed on cinema ticket prices at multiplexes and theatres in the state.
A single-judge bench led by Justice H.T. Narendra Prasad directed the state government and the Labour Department to file their objections. The court has posted the matter for further hearing on November 17, according to a report by Prajavani.
The petition has been filed by organisations including the Indian Broadcasting and Digital Foundation and JioStar India Private Limited. The petitioners have questioned amendments made in 2026 to the Karnataka Cine and Cultural Workers Welfare Act, 2024, along with the levy introduced under the amended law.
The cess is intended to generate funds for welfare schemes for cinema and cultural workers. The measure applies to the prices of cinema tickets sold at theatres and multiplexes. The petitioners have argued that the 2026 amendments and the levy imposed under them are unconstitutional and unlawful.
The challenge also relates to a notification issued by the Labour Department on September 10, 2026. The petitioners have asked the court to declare the amendments to the 2024 Act invalid and to quash the notification that operationalises the levy.
The petitioners have additionally sought interim protection against the notification until the case is decided. The report on the court proceedings said the petitioners requested a stay on the notification during the pendency of the case. The High Court’s direction reported so far is limited to issuing notice and seeking objections from the state government and the Labour Department; the report does not state that an interim stay has been granted.
The case places a state-level welfare financing mechanism against questions over the power to impose an additional charge on cinema admissions. For audiences, the central issue is whether the 2% amount will be collected as part of the ticket price while the legal challenge is pending. For theatres, multiplex operators and film-content companies, the proceedings concern the statutory basis and implementation of the levy.
The petition also brings cultural-worker welfare into the litigation. The state has linked the cess to funding welfare programmes for workers in the cinema and cultural sectors, while the petitioners are contesting the legal route used to create and collect that funding.
The court’s next step is to consider the objections from the Karnataka government and the Labour Department. The case has been adjourned to November 17, when the High Court is scheduled to take up the matter again.
