The Karnataka government has justified its proposal to impose a cess on movie tickets to support the welfare of cinema workers, following Governor Thaawarchand Gehlot’s return of the Karnataka Cine and Cultural Activists (Welfare) Bill for clarification. The Bill aims to levy a 1-2% cess on movie tickets, subscription fees, and related revenues within the state, with the funds directed to a Karnataka Cine and Cultural Activists Social Security and Welfare Fund.
Purpose of the Bill
The Karnataka Cine and Cultural Activists (Welfare) Bill seeks to establish a Karnataka Cine and Cultural Activists’ Welfare Board, which would be responsible for overseeing the welfare of workers in the film and cultural sectors. The cess collected from movie tickets and other related sources, along with additional government grants, would be deposited into a dedicated social security and welfare fund. This fund would then be used to support cine and cultural workers, providing them with necessary financial and social security benefits.
Governor’s Concerns
Governor Gehlot has raised concerns regarding certain aspects of the Bill, particularly questioning whether the proposed cess would apply to the Goods and Services Tax (GST). The Indian Broadcasting and Digital Foundation (IBDF) also expressed objections to the Bill, prompting further scrutiny. The Governor’s request for clarification on these points led him to return the Bill to the state government for further explanation.
The central issue raised by the Governor was whether the cess would also be imposed on the GST levied on movie tickets. In response to this query, Labour Minister Santhosh Lad emphasised that the cess is applicable only to movie tickets and not to the GST component. “It’s clear that the Governor has not read the Bill. Since it’s a Bill not even opposed by the BJP, it only shows lack of application of mind by the Governor. He sought to know whether there is a cess on GST and we have answered back that it’s only on cinema tickets,” Lad told *Deccan Herald*.
Political Context
The return of the Bill is part of an ongoing conflict between the state government and the Raj Bhavan, which escalated when the Governor sent back 11 bills passed by the Karnataka legislature. The Karnataka Cine and Cultural Activists (Welfare) Bill was among the 11 returned, creating further tension after Gehlot had earlier sanctioned Chief Minister Siddaramaiah’s prosecution in connection with the alleged Mysuru Urban Development Authority (MUDA) scam. The state government has provided clarifications for five of the bills returned by the Governor, including the cine workers’ welfare Bill.
This latest conflict highlights the strained relationship between the Karnataka government and the Raj Bhavan. Gehlot’s scrutiny of the Bill, despite its bipartisan support, reflects deeper political tensions between the ruling Congress and the Governor’s office.
Broader Implications for Gig Workers
The decision on the cine workers’ welfare Bill could also influence the fate of another significant piece of legislation—the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, which is currently being drafted. This proposed Bill, a key promise from the Congress’ election manifesto, seeks to introduce a cess to fund the welfare of gig workers, such as delivery personnel and drivers working for platform-based companies.
Under the draft law, the cess would either be levied on individual transactions or based on the company’s turnover. The government’s approach to levying a cess on movie tickets could serve as a model for implementing similar provisions in the gig workers’ Bill. The outcome of the cine workers’ Bill is, therefore, seen as a precursor to how the state government might handle the regulation and welfare of gig workers.
Industry Opposition
The Indian Broadcasting and Digital Foundation (IBDF), a key stakeholder, has objected to the proposed cess. They argue that the levy could have financial implications for the industry, potentially increasing the cost of cinema tickets and putting an additional burden on consumers. However, the government has defended the cess, arguing that it is necessary to ensure the welfare and social security of those working behind the scenes in the film and cultural industries.
The IBDF’s opposition could create further hurdles for the Bill’s passage, especially as the government faces pressure to balance the interests of the industry with those of workers.
Moving Forward
The state government remains committed to pushing the Karnataka Cine and Cultural Activists (Welfare) Bill forward. Labour Minister Lad’s strong defence of the Bill suggests that the government is prepared to address the Governor’s concerns and make the necessary clarifications. If the Bill is passed, it will set a precedent for how Karnataka manages the welfare of its workers in the entertainment industry.
The government’s handling of this issue also serves as an important test case for its broader social welfare agenda, particularly concerning gig workers. If the cine workers’ welfare Bill is successfully passed, it could pave the way for the implementation of similar welfare measures in other sectors.