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.
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