The Tamil Nadu State Government has given a big shock to the Tamil film industry by authorising the local bodies to levy 30% tax apart from GST on films. This would practically mean that 58-62% of the cost of each ticket will have to go for tax and the remaining 38% of revenue from each ticket will have to be shared by theatre owners, distributors and producers.

The Tamil Nadu Theatre owners association has announced an indefinite strike in protest against the Government's decision. No movie screening will happen in theatres across Tamil Nadu from Monday (July 3). The strike poses a severe threat of ruining the fortunes of many Tamil films that have released this week (June 30) and the once released in the past few weeks, and successfully running in theatres.

Now the Tamil Film Producers Council has intervened in the issue and has issued a statement urge the theatre owners to reconsider their unilateral decision to go on strike from Monday. The Council has also said that it cannot offer support to the strike as it will affect more around 20 film producers. The statement also points out that before announcing any form of protest, time should be given for the State Government to consider the representations made by the film industry unions against the levy of tax and take necessary action.