The Bengal Taxi Association (BTA), which had begun an indefinite strike on Thursday demanding slashing of sales tax and cess on diesel, withdrew the agitation.
It was withdrawn after West Bengal Transport Minister Subhas Chakraborty assured the association that he would look into their demands.
The minister, however, said it was not possible for the government to agree to slashing sales tax and cess on diesel.
BTA general secretary Bimal Guha said the talks with the minister were 'encouraging' and therefore the strike was withdrawn.
The minister, who is also the president of BTA, told reporters at the state secretariat that the talks with the taxi unions were positive, but the government was not considering cutting down sales tax on diesel.
Over 30,000 taxis had gone off the roads with two major taxi unions of the metropolis going on strike.
Five smaller taxi unions -- Calcutta Taxi Association, Progressive Taximen's Union, No Refusal Taxi Owners' Association, Taxi Operator's Association and United Taxi Association -- had opposed the strike.