Major relief to airlines as Maharashtra cuts VAT on jet fuel for mega hub Mumbai & 2 other airports
NEW DELHI: In a major relief to Indian airlines, the Maharashtra government has cut VAT on aviation turbine fuel (ATF) from 25% to 18% at India’s second biggest aviation hub — Mumbai — along with Pune and Raigad.
The announcement was made by deputy CM Devendra Fadnavis in the state’s Budget presented on Thursday. Now India’s biggest hub — Delhi — remains among the few states that still charge very high tax at 25% on jet fuel.
Indian carriers have historically faced high operating costs primarily due to steep ATF prices — caused by high base price and then even higher state and central taxes/duties on that.
