In a statement, the council which represents Tamil film distributors and other businesses linked to entertainment, said the authorities' move to make them pay an additional 10 per cent local body tax has come as a "shock" to the industry.
"The council has already expressed its stand on the issue during various meetings with government officials," the statement said.
Without regularising ticket prices for a long time, charging 10 per cent local body tax would lead to confusion among film producers, the council said.
In a meeting today, the council's top members decided to ask the government to withdraw the local body tax, and also not to release Tamil movies this Friday.
Theatres across Tamil Nadu had pulled down shutters for a few days after the GST came into force in July. They opened only after the government said it would form a panel to look into their demands.
The Greater Chennai Corporation's Revenue Department on September 30 had also asked the Tamil film industry to pay entertainment tax on new and old Tamil movies at 10 per cent and 7 per cent, respectively. While 20 per cent tax has to be paid for new films in other languages, 14 per cent has to be paid for old ones.