Karnataka 2% Cinema Cess: High Court Shields JioStar, Zee

The Karnataka High Court on Wednesday, 28 October 2026, told the state government not to take coercive steps against JioStar India, Zee Entertainment Enterprises and the Indian Broadcasting and Digital Foundation (IBDF) over a 2% cess on cinema revenue. Justice H T Narendra Prasad issued notice to the State and the Labour Department on the broadcasters’ petition and granted interim protection until the next hearing, LiveLaw and Bar & Bench reported.

Protection Only for the Three Petitioners

The order covers the petitioners, not every business that falls under the law. The broadcasters argue that the levy cannot be applied to television channels. LiveLaw reported that the Act’s definition of “related establishments” in Section 2(o) includes over-the-top television channels, and Section 9 applies the cess to ticket sales, subscription fees and revenue. The petition seeks to quash the Labour Department’s 10 September 2026 notification and to have the 2026 amendment to the Karnataka Cine and Cultural Activists (Welfare) Act declared unconstitutional to the extent it imposes the cess, according to Bar & Bench.

Theatres Raised the Same Challenge in September

Cinema operators went to court first. The Multiplex Association of India, PVR INOX and a cinema theatre challenged the Act, and on 30 September the State told the High Court it would take no coercive action against those petitioners until the next hearing, Deccan Herald reported. The Act came into force on 30 September, LiveLaw reported. The broadcasters’ case, WP 33251/2026, will be heard along with the connected petitions, including the Multiplex Association’s WP 30670/2026. There is no stay on the law itself.

Also read Karnataka High Court Quashes FIR Over X Repost, Sets Police Guidelines

Next Hearing on 17 November

Bar & Bench reported that the case returns to the court on 17 November. LiveLaw’s report did not give a date. Until the court decides, the State has no order allowing it to enforce the cess against the three broadcasters. Other TV channels and streaming platforms that fall under the definition have no such protection on record. For related court coverage, see the Daily Updates section.

Source: Based on reporting by LiveLaw, Bar & Bench and Deccan Herald.

Image: Bar & Bench.