The Karnataka High Court has sought the Karnataka government’s response to a petition challenging the state’s proposed 2% cinema ticket cess, after multiplex operators questioned whether the levy can be collected before the enabling law has formally come into force.
A division of the court headed by Justice H T Narendra Prasad issued notice to the state government on Wednesday in response to the petition filed by the Multiplex Association of India, PVR INOX Ltd and other petitioners.
The petitioners have challenged demands issued through government circulars and notices for collecting the additional amount from cinema ticket revenues. They have argued that the Karnataka Cine and Cultural Activists (Welfare) Act, 2024, has not yet been brought into force because the government has not issued a commencement notification.
According to the petition, authorities issued a circular on August 29 directing cinema theatres and multiplexes across Karnataka to collect an additional 2% from ticket prices beginning September 1. The multiplex operators have contended that administrative circulars cannot impose the levy when the parent legislation itself is yet to become operational.
The legal challenge also covers the Karnataka Cine and Cultural Activists Social Security and Welfare Rules, 2025, as well as the 2026 amendment to the Act. The petitioners have asked the court to examine the validity of the levy and the steps taken by authorities to enforce it.
The case places the immediate focus on whether cinema operators can be required to collect the cess from customers without a notified commencement date for the legislation. The government’s response will clarify its position on the Act’s status and the legal basis for the circulars issued to theatres and multiplexes.
The High Court has directed the state government to respond to the petition. Further proceedings will determine how the challenge to the cess, the welfare rules and the 2026 amendment is considered by the court.
