Finance Minister Pranab Mukherjee today announced withdrawal of the proposed 5% service tax on air-conditioned hospitals with more than 25 beds and on diagnostic services.

The announcement was greeted with loud thumping of desks by members as the Minister hoped that it will no more be called misery tax.

During the general discussion on the Budget last week, almost all political parties wanted the Finance Minister to withdraw the healthcare service tax proposal, which was dubbed as "misery tax".