New Delhi: The Maharashtra government has reduced the tax on aviation fuel in a move aimed at easing rising airfare pressure as airlines face higher operating costs due to ongoing tensions in West Asia, ANI reported.
The state has lowered the Value Added Tax on Aviation Turbine Fuel from 18% to 7%, with the revised rate coming into effect on Friday.
Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu said the decision would help stabilise fares and support airline operations during a period of global uncertainty. He thanked Chief Minister Devendra Fadnavis for taking timely action.
He noted that Maharashtra, which has 16 operational airports and handles around 75 million passengers annually, stands to benefit significantly from the tax cut, as it will support smoother flight operations and benefit a large number of travellers.
The aviation sector has been under pressure due to disruptions in airspace, uncertain flight routes and a sharp rise in fuel costs linked to geopolitical tensions. Aviation fuel accounts for a major share of airline expenses, making any increase in prices a direct burden on carriers and, eventually, passengers.
The central government has already taken steps to reduce the impact by capping fuel prices for domestic airlines, lowering airport charges and extending financial support measures.
However, taxes on aviation fuel are decided by individual states and vary widely, making them a key factor in determining operating costs. The reduction in Maharashtra is expected to improve the competitiveness of its airports compared to those in neighbouring states, according to ANI.
Industry observers say such measures can offer immediate relief to airlines and help contain fare increases while global conditions remain uncertain.
