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Karnataka govt plans 2% extra tax on movie tickets, Netflix, Prime users – Trak.in

Karnataka govt plans 2% extra tax on movie tickets, Netflix, Prime users – Trak.in

The Karnataka Labour Department has introduced the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, in the state legislature. The initiative, presented by Labour Minister Santhosh Lad, aims to provide social security to film artists and cultural activists. The bill was introduced amid protests by the opposition BJP over a scam in the state social security fund.

Karnataka govt plans 2% extra tax on movie tickets, Netflix, Prime users – Trak.in

Definition of film and culture activists

The law defines “Cine and Cultural activists” as persons working in the cinema industry, including actors, musicians, dancers and other skilled or unskilled workers. It also includes persons engaged in related activities as specified by the government. The legislation seeks to support these persons through various welfare schemes and grievance redressal mechanisms.

Establishment of a Welfare Council

One of the key provisions of the Bill is the creation of the Karnataka Cine and Cultural Activists’ Welfare Board. This board will be responsible for registering cinema workers, creating welfare schemes and addressing grievances. It is designed to ensure that those working in the film and cultural sector have access to necessary social security benefits.

Establishment of a Social Security and Welfare Fund

Another important provision is the creation of the Karnataka Cine and Cultural Activists Social Security and Welfare Fund. This fund will be funded by a levy on cinema tickets, subscription fees and all revenue generated by related institutions in the state. The levy will vary between one and two per cent, with the aim of creating a substantial fund for welfare activities.

Penalties for non-compliance

The Bill includes penal provisions for employers who violate the provisions or fail to comply with the rules. Fines can extend to ten thousand rupees for the first violation and one lakh rupees for subsequent violations, to ensure compliance with the new regulations.

Context of recent legislative activities

This bill is the third that the Karnataka Labour Department has introduced in recent weeks. Earlier, the state cabinet had approved the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, to reserve up to 75 per cent of private sector jobs for locals. However, the proposal was withdrawn following a backlash from the industry.

Upcoming Gig Worker Welfare Act

Besides the Film Artistes Welfare Bill, the Karnataka government is expected to introduce the Karnataka Platform Based Gig Workers (Social Security and Welfare) Bill, 2024, during the monsoon session. The bill proposes the creation of a welfare board and fund for gig workers, funded by a welfare fee collected from aggregators. The fund will also receive contributions from the state and employees.

Conclusion

The introduction of the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, reflects the state’s commitment to provide social security to diverse groups of workers. Amid ongoing legislative activities, these initiatives aim to address the welfare needs of various sectors, including film artistes, cultural activists and gig workers, and ensure comprehensive support and safety to these communities.

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