Maharashtra government has cut value added tax on aviation turbine fuel from 18 per cent to 7 per cent for a six month period till November 14.

The move will benefit airlines which are facing increased cost pressure due to a rise in jet fuel prices and marks a success for civil aviation ministry’s efforts to lower their burden.

Maharashtra has two of country’s busiest airports - Mumbai and Pune. While Mumbai is the second busiest, Pune is ranked eighth in passenger traffic.

Demand for a tax rate cut has been raised for years. In the past couple of months it got renewed urgency as the West Asia conflict raised costs. The Federation of Indian Airlines wrote to government last month seeking urgent support to alleviate cost pressures.

In a post on X on Friday, Civil Aviation Minister Ram Mohan Naidu Kinjarapu said Maharashtra State has 16 operational airports and highest annual air traffic amongst the states, of around 75 million passengers. “This reduction in VAT will help flight operations in all these airports, and benefit the large number of passengers, by keeping the airfares in check while the global challenges continue to push airfares upwards,” Naidu said.

“One of the important expenditures in the aviation industry is the VAT on ATF that is levied by state governments. Ministry of Civil Aviation has been engaging with State governments to reduce this VAT for some time, and specifically during the crisis times,” Naidu said.

Delhi and Tamil Nadu governments charge the highest VAT on aviation turbine fuel. While Delhi levies a 25 per cent rate, in Tamil Nadu it is 29 per cent.

Published on May 15, 2026