Maharashtra extends 7% VAT on aviation turbine fuel till April 14
On May 14, the state government had reduced the VAT on ATF from 18% to 7% for six months, with effect from May 15.
The Maharashtra government has extended the 7% value-added tax (VAT) on aviation turbine fuel (ATF) until April 14, 2027, the National Political Bureau of Hindustan Times reports. This concession, announced in May, was set to expire on November 14. The tax reduction came after a spike in global crude oil prices and the disruption caused by the conflict in West Asia, which increased the operating costs for airlines.
Initially, the state government cut the VAT on ATF from 18% to 7% for six months, starting from May 15, 2026. The Maharashtra Value Added Tax Act allows the government to make such amendments, as seen in the notification dated May 14, 2026. Airlines heavily rely on ATF, which constitutes 40-50% of their total operating expenses.
Lower fuel taxes can alleviate some of the cost pressure on airlines, although the impact varies depending on other operational expenses. Neha LM Tripathi, a Special Correspondent for the Hindustan Times, covers aviation and railways for the organization, focusing on policy, people, and travel trends.
Written by urgent.news from Hindustan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
