"The proposed five percent VAT on domestic LPG has been reduced and it would now be only three percent," Pawar informed the state legislature.
The five pecent VAT on domestic LPG would have hiked the cost of an LPG cylinder by around Rs.20, earning the state exchequer additional revenue of upto Rs.2.50 billion per annum, though putting a substantial burden on citizens' pockets.
Last Tuesday, a day after Pawar presented the state budget 2012-13, state Congress chief Manikrao Thakre led a delegation to Chief Minister Prithviraj Chavan, demanding withdrawal of the tax.
Incidentally, legislators from Pawar's Nationalist Congress Party also joined the chorus for the rollback, as it would hit the common man while the opposition parties had threatened to launch statewide agitations protesting the hike.
Shiv Sena executive president Uddhav Thackeray warned of a protest march while Bharatiya Janata Party's Vinod Tawade, leader of opposition in the Legislative Council has already launched state-wide sit-ins and demonstrations demanding the withdrawal of the tax.