Maharashtra Cuts Aviation Fuel VAT from 18% to 7% for Six Months.
According to an official, the Maharashtra government lowered the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 18% to 7% for a six-month period starting on May 15.
In accordance with the Maharashtra Value Added Tax Act of 2002, the state Finance Department announced the decision on May 14.
“Unless the government extends or modifies it, the concession will be in effect from May 15 to November 14, after which the former tariff will apply.” In Entry 6 of Schedule B attached to the Maharashtra Value Added Tax Act 2002, the revision replaces the current 18% tax rate with 7%, according to an official notification.
According to the source, the reduction in VAT is anticipated to lower aircraft fuel costs and perhaps enhance air connectivity and airport competitiveness in the state.
The finance department stated that although the action is anticipated to help airlines, the state exchequer will lose almost Rs 600 crore in revenue as a result.
