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Karnataka Opens 15-Day Consultation on ₹200 Cinema Ticket Ceiling

Under the draft amendment to the Cinemas Regulation Rules, the government has set a ₹200 ticket ceiling inclusive of tax; stakeholders have 15 days to submit objections before finalization

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Overview

  • The Home Department issued a draft notification on July 15 amending the Karnataka Cinemas (Regulation) Rules, 2014 to cap ticket prices at ₹200 per show for all language films across single-screen theatres and multiplexes, inclusive of entertainment tax.
  • The notification kicks off a 15-day public consultation period during which film bodies, exhibitors, multiplex chains and the general public can send objections and suggestions to the Additional Chief Secretary, Home Department.
  • The Karnataka Film Chamber of Commerce and Karnataka Film Exhibitors Association support the cap as a means to boost regional cinema attendance, while multiplex operators warn of potential revenue losses and operational challenges.
  • Industry analysts estimate a flat ₹200 cap could lower PVR Inox’s average ticket price by 3.7%, translating into an expected 2.2% drop in top-line revenue and a 1.8% EBITDA impact over fiscal years 2026 to 2028.
  • A similar ceiling introduced in 2017 was overturned after legal challenges in Karnataka High Court, highlighting the challenge of balancing affordability goals with economic sustainability as the state moves to finalize the rule.