Maha govt cuts VAT on jet fuel from 25 percent to 18 percent

In a major relief, Maharashtra government announced reducing the value added tax levied on aviation turbine fuel (ATF) to 18 per cent from 25 per cent in Mumbai, Pune and Raigad, giving relief to domestic carriers.

The new rate will be applicable in Mumbai, Pune and Raigad districts, deputy chief minister Devendra Fadnavis announced in his budget speech. Maharashtra levies 4 per cent VAT on ATF in districts except Mumbai and Pune.

I thank Maharashtra CM @mieknathshinde Ji & Depy CM @Dev_Fadnavis Ji for taking the progressive decision to reduce VAT on Air Turbine Fuel from 25 per cent to 18 per cent. In a scenario of high fuel prices, this step will prove to be a catalyst in our efforts to ramp up air connectivity," Union Minister for Civil Aviation Jyotiraditya Scindia said in a tweet.

Scindia also said, With this, Maharashtra joins the league of total 19 states/UTs that have rationalised VAT rates in the last 1.5 years. Alongside enhanced connectivity for Mumbai, Pune & Raigad, this will also make travel more affordable, and boost growth.

I thank Maharashtra CM @mieknathshinde Ji & Depy CM @Dev_Fadnavis Ji for taking the progressive decision to reduce VAT on Air Turbine Fuel from 25% to 18%. In a scenario of high fuel prices, this step will prove to be a catalyst in our efforts to ramp up air connectivity.

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— Jyotiraditya M. Scindia (@JM_Scindia) March 9, 2023