In a significant relief for cinema exhibitors, the Karnataka High Court has quashed notices that had made the collection and remittance of a 2% cess on cinema tickets mandatory. The order, delivered on September 10, 2026, came in response to a writ petition filed by the Multiplex Association of India (MAI), PVR INOX, and other stakeholders in the exhibition sector.
Karnataka High Court quashes 2% cess on movie tickets; big relief for multiplexes and moviegoers
The petitioners had challenged the notices on the grounds that they lacked legal backing. The Court agreed, noting that the Karnataka Cine and Cultural Workers (Welfare) Act, 2024, under which the cess was to be levied, had not yet been formally notified. In the absence of this notification, the Court held that the notices directing exhibitors to collect and remit the levy were issued without jurisdiction, and accordingly quashed them.
The ruling comes alongside a related development on the administrative front, with the State Government having already withdrawn its office order dated August 29, 2026, which had pertained to the same cess.
The case stemmed from concerns raised by MAI over the proposed additional levy on movie tickets. The association had argued that an added cess would push up the cost of cinema-going for audiences, po
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