Under pressure from all quarters, including ruling coalition partner Congress and even from within his own NCP, Maharashtra finance minister Ajit Pawar on Thursday announced a rollback by 2% of the 5% Value Added Tax (VAT) he had proposed in Budget on LPG for domestic use.
"The tax would be now 3%, instead of 5%," Pawar informed the state legislative council in Mumbai.
On Tuesday, Congress legislators led by state unit president Manikrao Thakre had met chief minister Prithviraj Chavan and demanded withdrawal of the tax.
Several NCP legislators had also demanded a rollback saying the LPG hike will pinch the common man.
The 5% tax would have raised the cost of a domestic LPG cylinder by approximately Rs 20, and earned revenue to the tune of Rs 200 to Rs 250 crore.
Shiv Sena executive president Uddhav Thackeray, who met Chavan, had announced that his party will hold a protest march if the tax hike is not done away with.