Big Relief For Flyers: Maharashtra Government Cuts Aviation Fuel VAT Sharply
The revised tax rate came into effect on Friday, May 15, and will remain applicable until November 14.
- Maharashtra slashes Aviation Turbine Fuel VAT to 7%.
- Reduced VAT aims to ease airline costs and airfares.
- New rate effective until November 14 for relief.
Amid the ongoing conflict in West Asia and rising inflationary pressures, the Maharashtra government has announced a major reduction in Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) to provide relief to airlines and air passengers.
The state government has reduced VAT on ATF from 18 per cent to 7 per cent.
The revised tax rate came into effect on Friday, May 15, and will remain applicable until November 14.
Civil Aviation Minister Announces Decision
Kinjarapu Ram Mohan Naidu shared details of the decision on social media platform X.
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In his post, the minister also thanked Maharashtra Chief Minister Devendra Fadnavis for the move.
Aim Is To Ease Cost Pressure On Airlines
The primary objective behind the tax reduction is to reduce operational cost pressures and rising airfare concerns triggered by the ongoing crisis in West Asia.
The government believes the VAT cut will help reduce the financial burden on airlines and support smoother flight operations.
It is also expected to help control sharp increases in airfares for passengers.
Maharashtra Handles Highest Air Traffic In India
Maharashtra currently has 16 operational airports and records the highest air traffic in the country.
Around 7.5 crore passengers travel by air annually in the state, while nearly 2 lakh passengers travel every day.
The VAT reduction is expected to benefit passengers across all airports in the state.
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