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Informist, Friday, May 15, 2026

 

--Maharashtra govt cuts ATF value-added tax to 7% from 18?rlier 

 

MUMBAI – In a respite for airlines, the Maharashtra government has reduced the value-added tax on aviation turbine fuel to 7% from 18?rlier, effective Friday, according to a document released by the finance department of the state government. The order will be applicable till Nov. 14. The Indian aviation industry is under significant pressure as the war in West Asia has led to a spike in jet fuel prices, airspace closures, and uncertainty over operations.

 

"This reduction in VAT will help the flight operations in all these airports, and benefit the large number of passengers, by keeping the airfares in check while the global challenges continue to push airfares upwards," Minister of Civil Aviation Kinjarapu Ram Mohan Naidu said in a post on social media platform X. Maharashtra has 16 operational airports and the highest annual air traffic amongst states in the country at around 75 million passengers.

 

The move follows discussions between the civil aviation ministry and state governments, Naidu said. "One of the important expenditures in aviation industry is the VAT on ATF that is levied by state governments."  End

 

Reported by Ashutosh Pati

Edited by Vandana Hingorani

 

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