Bengaluru: The State Government informed the Karnataka High Court on Thursday that the circular issued to levy a 2% cess on revenue generated from cinema tickets has been withdrawn via an office order dated September 9.
It further stated that the government has not yet notified the commencement date of the Karnataka Cine and Cultural (Welfare) Act, 2024—the legislation upon which the contested circular was based—in the official gazette.
Justice H.T. Narendra Prasad was hearing a petition filed by the Multiplex Association of India and others challenging the circular issued on August 29. During the proceedings, the State Government submitted a memo to the court regarding the withdrawal order.
Taking the State Government’s statement on record, the court quashed the contested circular and related notices, thereby disposing of the petition.
The petitioners had argued that the State Government could not levy a cess through circulars when the parent Act itself had not yet come into force. The Governor had granted assent in September 2024 to the Act, which had been passed by the State Legislature.