Goa cuts aviation turbine fuel VAT to 7% as IndiGo applauds the move
Goa lowered the VAT on aviation turbine fuel from 15% to 7% starting Oct 24, and IndiGo praised the decision, urging other states to follow.
On October 23, Goa’s Department of Finance (Revenue and Control) issued a notification revising Schedule C of the Goa Value Added Tax Act, 2005, to reduce the VAT on aviation turbine fuel (ATF) not listed under entry 1 to 7%, down from the 15% rate in place since March 2024. The amendment becomes effective on October 24. IndiGo responded on X, thanking Chief Minister Pramod Sawant and calling the reduction a progressive step for the aviation ecosystem.
The carrier argued that the lower tax will improve air connectivity, bolster the tourism sector and make airfare more accessible. IndiGo also urged other Indian states to consider similar measures. The notification retains a separate classification for this ATF category, distinct from fuel covered by the earlier entry.
Why it matters
A lower fuel tax could lower ticket prices and boost tourism in Goa and potentially elsewhere in India.
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