The Finance Minister Pranab Mukherjee today announced withdrawal of the proposed 5 per cent service tax on airconditioned hospitals with more than 25 beds and on diagonistic services. The announcement was made by Mr. Mukherjee in the Lok Sabha today, while introducing the Finance Bill. The announcement was greeted with loud thumping of desks by members. During the general discussion on the Budget last week, almost all political parties wanted the Finance Minister to withdraw the healthcare service tax proposal.The finance minister proposed to enhance the abatement of 40 per cent to 55 per cent on the retail sale price. With this relief a unit will continue to be eligible for SSI exemption in 2011-12 even if it had a turnover based on retail sale price of 8.9 crore rupees in the current year. This step has been taken to address concern of exporters.With regard to the proposal to reduce basic customs duty on raw silk from 35 percent to 5 per cent, the Minister said it was aimed at augmenting the supply to weavers in both handloom and the powerloom sector.Referring to the financial sector reforms, the Minister said, the government proposes to pursue three more financial sector legislations — PFRDA Bill, the Bill on Factoring and Assignment and the State Bank of India Subsidiary Bank Law Amendment Bill — in the coming days.Mr. Mukherjee had earlier in the day tabled, the Banking Law Amendment Bill 2011 and the Constitutional Amendment Bill for introduction of Goods and Services tax (GST). On the crisis emanating from political uncertainties in Middle East and Libya, Mr. Mukherjee said the country can withstand the impact of such crisis.