Bangalore: Confederation of Indian Industry (CII) has welcomed Karnataka Government's decision to withdraw the special entry tax on 23 notified goods.

"This move would go a long way in reinstating faith of industry in the Government," CII-Karnataka chairman K K Swamy said in a statement in Bangalore today (Oct 26, 2004).

The Government had issued an official statement late yesterday (Oct 25, 2004) exempting payment of special entry tax with retrospective effect from October 1.

The imposition of the tax had been termed as "retrograde" by trade and industry bodies. CII had pointed out earlier that Karnataka is the only industrialised State to have such taxation.

Swamy expressed hope that the Government would similarly address other concerns of the industry, particularly with regard to infrastructure, tax hike on diesel used for captive power generation and that of the deemed EOU (Export Oriented Unit).