Bangalore: The Greater Mysore Chamber of Industry (GMCI) today (Oct 4, 2004) termed "draconian" and "anti-industry" Karnataka's move to impose a special entry tax on 23 goods being brought into the State and urged the Government to withdraw the legislation.

The special entry tax, which came into effect on October 1, has been imposed on 23 commodities including building materials, electrical and electronic goods, earth movers, furniture, computers, DG sets and lifts among others.

"This will sound the death knell for industry in the State," GMCI president S Chandrasekhar said in a statement.

He said the industry was yet to recover from the two tax levies - road and infrastructure cess on sales tax - in February and August this year and the special tax on entry tax "comes like a bolt from the blue".

"In view of the rationalisation of taxes in neighbouring States, a new levy like this will render industries in Karnataka totally uncompetitive. Industry has no option but to consider moving out of Karnataka," Chandrasekhar said.

He said large industries are already contemplating to move out of the State in view of the withdrawal of notification, which provided for concessional rate of sales tax against Form 37 and added, "This tax is like adding insult to injury."