Maharashtra government announces steep reduction in VAT on jet fuel, slashes it to 7%

In a relief to airlines, the Maharashtra government has significantly reduced Value Added Tax (VAT) on Aviation Turbine Fuel (ATF). According to an official notification, the state government has slashed VAT from 18 per cent to 7 per cent. The slashed VAT will be applicable for a period of six months. The decision comes on a day when petrol and diesel prices were hiked by Rs 3 per litre each, marking the first increase in more than four years, as state-run fuel retailers passed on part of the hit from surging global crude prices triggered by the Iran war.