PVR INOX, Multiplex Association Challenge Karnataka Cinema Cess; HC Seeks State Reply

PVR INOX and the Multiplex Association have challenged the Karnataka cinema cess; the High Court has sought the state's reply.

Updated: 10 Sept 2026 • 9:56 am

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PVR INOX, Multiplex Association Challenge Karnataka Cinema Cess; HC Seeks State Reply

Quick Answer

The Karnataka cinema cess is a 2 percent levy on cinema ticket revenue under the Karnataka Cine and Cultural Activists (Welfare) Act, 2024, which PVR INOX, the Multiplex Association of India and shareholder Shantanu Pai have challenged in the Karnataka High Court. The petitioners argue the state cannot enforce the Karnataka cinema cess through circulars and notices when the parent Act has not formally come into force. Justice H T Narendra Prasad has issued notice to the state government, with the matter listed for further hearing.

A 2 percent levy on cinema tickets meant to fund welfare for cine workers is now under legal challenge, with the Karnataka High Court seeking the state's response.

Here is what the Karnataka cinema cess dispute is about and where the case currently stands.

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Table of Contents

What the Cess Requires

The Karnataka Cine and Cultural Activists (Welfare) Act, 2024, provides for a cess on cinema revenues and earnings of related establishments. An August 29 circular directed cinema theatres and multiplexes across the state to collect an additional 2 percent from ticket buyers starting September 1, prompting the Karnataka cinema cess challenge.

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The Petitioners' Argument

The Multiplex Association of India, PVR INOX and shareholder Shantanu Pai argue that the state cannot demand the Karnataka cinema cess through administrative circulars and notices when the parent Act has not been brought into force via a formal commencement notification. They have also argued the state legislature lacked competence to impose the cess since Parliament had already enacted the Code on Social Security, 2020.

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FAQs

What is the Karnataka cinema cess?

Ans. It is a 2 percent levy on cinema ticket revenues under the Karnataka Cine and Cultural Activists (Welfare) Act, 2024, meant to fund welfare for cine workers.

Who has challenged the Karnataka cinema cess?

Ans. The Multiplex Association of India, PVR INOX Ltd and its shareholder Shantanu Pai have filed the petition.

What is the main legal argument against the cess?

Ans. The petitioners argue the state cannot enforce the cess through circulars when the parent Act has not formally come into force via a commencement notification.

What has the Karnataka High Court done so far?

Ans. Justice H T Narendra Prasad has issued notice to the state government, with the matter listed for further hearing.

When was cinema halls asked to start collecting the cess?

Ans. An August 29 circular directed theatres to start collecting the additional 2 percent from September 1.

Is the Karnataka cinema cess currently in effect?

Ans. Its enforceability is under dispute; the court has said it will examine whether the underlying 2024 Act has come into force before addressing the merits.