Licensees have been invited to a meeting to discuss the situation next Wednesday.
Plans for the talks come a week after it emerged that a community activist is set to stand on a 'scrap the ban' ticket at next year's council elections.
The meeting will be staged in The CISWO Club in North Street, whose chairman said it had been hard-hit by the prohibition on lighting up in enclosed public places imposed by the government in March.
David Nelson said: "We are looking for all licencees, landlords and even people like cafe owners who are being adversely affected by this to attend to see what we can do about it.
"The more people I speak to about this, the worse it seems to be getting.
"We estimate that we are losing £2,000 a week because of the ban and it can't go on like this because it is killing the pubs in the area.
"We have invited Tricia Marwick MSP to attend and she has said she will be coming along and we are waiting to hear back from Christine May.
"They voted for the ban, so it will be interesting to hear what they have got to say about it."
Mr Nelson has been highly critical of government claims that the ban has actually improved trade in pubs, something which he insist is not reflected in the town.
Enforcement officers have carried out 1,312 inspections in Fife since the ban was introduced and compliance is estimated at 99 per cent for restaurants, hotels and bars.
Nine written warnings about breaches have been issued - but most are understood to relate to taxis and other work vehicles rather than pubs - and no fixed penalties have been levied.
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