Maharashtra Slashes VAT on Aviation Fuel to Boost Air Connectivity

The Maharashtra government has temporarily reduced the Value Added Tax on Aviation Turbine Fuel from 18% to 7% for six months beginning May 15. This move aims to lower fuel costs for airlines, potentially enhancing air connectivity and airport competitiveness within the state.

In a strategic move to enhance aviation sector growth, the Maharashtra government has significantly reduced the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 18% to 7% for six months starting May 15, according to an official statement.

The Finance Department notified this amendment on May 14, with the revised rate set to remain effective until November 14, unless further extended or altered by the government. This decision amends Entry 6 of Schedule B under the Maharashtra Value Added Tax Act 2002.

Officials indicate that this tax concession is expected to lower operational costs for airlines, which could subsequently boost air connectivity and the competitiveness of airports throughout Maharashtra.