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Maharashtra cuts jet fuel VAT to 7 percent from 18 to shield airlines from soaring costs
Economy
Published on 15 May 2026
VAT drop lasts only until mid November
Maharashtra has reduced VAT on aviation turbine fuel to 7% from 18% for a limited period ending November 14, offering short-term relief to Indian airlines battling expensive jet fuel. The move targets a major cost driver, since fuel can make up 35–40% of airline spending. With Mumbai handling about 15% of air traffic, the cut should improve the airport’s competitiveness versus Delhi’s 25% VAT. Airlines now want broader tax reforms, including bringing ATF under GST.
- Maharashtra slashed ATF VAT to 7% from 18%
- The reduced VAT applies until November 14
- Jet fuel costs were pressured by the West Asia war
- Fuel can account for 35–40% of airline expenditure
- Mumbai’s ATF VAT is now far below Delhi’s 25%
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times