Maharashtra Slashes ATF Tax by 11% to Aid Airlines in Crisis

Maharashtra has stepped up to support struggling domestic airlines by reducing VAT on ATF from 18% to a more affordable 7%, a move announced amid escalating challenges from the Middle East conflict. The state government's bold action aligns with New Delhi's urgent call for tax relief to mitigate the aviation sector's woes. Effective from today, the cut—detailed in a fresh notification—will last until November 14, 2026, providing airlines with much-needed predictability in fuel expenses. Civil Aviation Minister Ram Mohan Naidu hailed the decision, thanking Maharashtra CM Devendra Fadnavis for his proactive stance. On X, Naidu painted a stark picture of the industry's plight: shuttered airspaces, unpredictable schedules, and fuel price spikes. The Modi government has countered with a barrage of reliefs—ATF price ceilings for domestic routes, slashed airport fees, and credit facilities—to keep carriers airborne. State-imposed VAT on ATF ranks among the sector's heftiest costs, Naidu noted, adding that his ministry has been lobbying states for reductions, especially now. Maharashtra's 16 airports, buzzing with 75 million passengers yearly, stand to gain immensely. This tax break promises to ease operational strains, curb rising ticket prices, and deliver relief to everyday flyers grappling with global disruptions. As airlines battle these headwinds, Maharashtra's initiative sets a precedent, potentially inspiring other states to follow suit and fortify India's aviation backbone.