The Goa government has reduced value-added tax (VAT) on aviation turbine fuel (ATF) to 7% from 15%, lowering the state tax applicable to fuel purchases by airlines.
The revised rate will take effect on October 24, according to a notification issued by the state's Finance Department on Friday, October 23.
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The reduction could help lower fuel costs for airlines refuelling in Goa, although the actual savings will depend on fuel prices, consumption and refuelling arrangements.
The notification amends Schedule C of the Goa Value Added Tax Act, 2005, replacing the existing tax rate for aviation turbine fuel covered under the relevant entry with a revised rate of 7%. The amendment has been issued under Section 5(4) of the Act and applies to ATF not covered under the schedule's separate entry.
The revision represents an eight-percentage-point reduction in the applicable VAT rate. ATF is a major operating expense for airlines, and state-level taxation can influence the cost of refuelling at different airports.
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VAT rates on aviation turbine fuel vary across states, making the tax an important consideration for airlines when managing fuel expenses. Goa's decision follows similar reductions in Delhi and Maharashtra, where VAT on ATF was cut to 7% from 25% and 18%, respectively.
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