Major distributors and exhibitors in Mexico plan to file an injunction before the Supreme Court to contest the new public service fee of one peso (10 cents) levied on cinema tickets.

Introduced by the country's Congress in an effort to raise funding for local film production, the fee has riled both sectors who declare that it is unconstitutional to charge a tariff on a service provided by a private industry.

Revenue collected from the new fee is meant to fill the coffers of local film funds Fidecine and Foprocine. Ticket sales are estimated to reach up to 150m again this year, which will allow additional funding of $15m (150m pesos) to help stimulate local production. State-backed national film institute Imcine is to administer the new revenue, a fact that has some film executives wary. "It is a very bureaucratic institute," said Alma Garcia of leading Mexico City circuit Cinemex.

Exhibitors raised ticket prices an additional two to five pesos based on their screens' locations last week. Whether the slight increase will have an impact on moviegoing habits will have to be assessed at a later date. "I don't expect to see much of an impact in cinemas located in affluent neighborhoods," said Garcia.

The new prices were introduced during the first week of January which is normally the busiest week in winter. Tickets cost an average of 35 to 45 pesos ($3.5 to $4.5) at present.