Office-bearers of Tamil Film Producers Council, Tamil Nadu Distributors Association and Tamil Nadu Theatre Owners Association who met here announced that no new movies would be released from October 6.
"We had already made our requests to the government not to impose any new tax. Levy of 10 per cent local body tax from September 27 came as a big shock for the industry," TFPC president and actor Vishal Krishna told reporters.
Film theatre owners went on strike in July soon after the Goods and Services Tax was implemented and announcement of local body tax by the state government.
The government had said a committee would be formed to discuss the issues following which the strike was withdrawn.
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Expressing hope that the government would consider the demand, Krishna said only Tamil Nadu was collecting the 10 per cent local body tax when compared to other states.
Asked whether new films would be released in Puducherry from October 6, he said movies would not get released in the Union Territory also.
"We have made various requests to the government in the past. We are making this announcement with a heavy heart since we don't have any other option. The film industry will become a sick unit in this kind of situation," he said.
He said the associations would make a representation again to the Tamil Nadu government in this regard.
The Tamil Film Producers Council had yesterday decided to not release Tamil movies from Friday.