In exercise of the powers conferred by sub-section (1) of Section 5 of the Karnataka Special Tax on Entry of Certain Goods Act, 2004 (Karnataka Act 29 of 2004), the Government of Karnataka, being of the opinion that it is necessary in the interest of public so to do, hereby exempts the tax payable under the said act.

• on entry of any notified goods excluding petroleum products into a local area by a importer who is a developer or co-developer of a Special Economic Zone for use in the authorized operations in the entire area of Special Economic Zone; and
• on entry of any notified goods excluding petroleum products into a local area by an importer who is an unit located in the processing area of the Special Economic Zone for use in its set up, operation or maintenance or for use in manufacture, trading, production, processing, assembling, repairing, reconditioning, re-engineering or packing, in the Special Economic Zone area, subject to the following procedure.

Procedure - The developer or co-developer of the Special Economic Zone or the unit located in the Special Economic Zone shall furnish along with the monthly or quarterly statement filed as per rules made under the said Act for the first month or quarter in which tax exemption is claimed, a certificate issued by the Director of Industries and Commerce, Government of Karnataka or his authorized nominee certifying that he is eligible for exemption from payment of entry tax as per Government Order No. CI 114 SPI 2007, dated 28-2-2009.