The Maharashtra government is planning to the reduce sales tax component on aviation turbine fuel (ATF). The state is currently working on a proposal to lower sales tax and bring it on par with other hubs like Delhi. An announcement on this issue is likely to be made soon.
“We need to reduce tax on ATF to at least bring it to what other major destinations like Delhi. We had a meeting with Ajit Singh where he was able to convince that if we bring the ATF taxes down, there would be more flights coming to Mumbai to get their fuel loaded,” Prithviraj Chavan, Maharashtra’s Chief Minister was quoted as saying by Business-Standard.
Maharashtra levies 25% sales tax to airlines refueling their aircraft in Mumbai, while Delhi charges 20%.