The Karnataka High Court has sought the State government's response to a petition filed by the Indian Broadcasting and Digital Foundation (IBDF), JioStar and Zee Entertainment challenging the levy of a 2 per cent cess on cinema ticket prices [Indian Broadcasting & Digital Foundation & Others V. State of Karnataka].
Justice H T Narendra Prasad issued notice to the State government and the State Department of Labour. The Court also extended to the petitioners interim protection against any coercive action over non-collection of the cess.
The petitioners have sought to quash a September 10, 2026, notification issued by the Labour Department and urged the Court to declare as unconstitutional a 2026 amendment to the Karnataka Cine and Cultural Activists (Welfare) Act, and corresponding rules of 2025, insofar as they impose or facilitate the collection of cinema ticket cess.
The challenge specifically concerns Sections 2(g), 2(o), 8, 9, 11, 13 and 16 of the Act, along with Rules 2(1)(c), 8(2), 10 and 11 of the 2025 Rules.
The petitioners have also sought the quashing of all consequential actions arising from the September notification.
The petition has been filed through advocate Gitanjali Miriam Mathew.
The matter to be heard next on November 17.
The latest challenge follows a similar set of petitions filed by the Multiplex Association of India (MAI), PVR INOX Limited, PVR INOX shareholders Prateek Chauhan and cinema theatre Vinayaka Chitramandira.
On September 30, the State government had assured the High Court that it would refrain from taking coercive action against cinema operators, for the time being, over any failure to collect the 2 per cent cess on cinema tickets.