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Amid a sharp rise in aviation fuel costs, Civil Aviation Minister Ram Mohan Naidu has urged state governments to reduce Value Added Tax on Aviation Turbine Fuel to ease pressure on airlines and passengers. The appeal comes ahead of a scheduled revision in fuel prices, which is expected to push airfares higher.
The request has been made to multiple chief ministers, with the ministry highlighting that high state-level taxes are adding significantly to operational costs. Some states currently levy steep VAT rates on jet fuel, increasing the burden on airlines already grappling with global price volatility.
The surge in fuel prices has been driven by the ongoing West Asia conflict, with global ATF rates nearly doubling in a month. This sharp increase has raised concerns within the aviation sector, as fuel accounts for a major portion of airline expenses.
Officials said discussions with state governments are underway, and a resolution is being explored to stabilise fares. Industry stakeholders believe that a reduction in VAT could provide immediate relief and help prevent a steep rise in ticket prices.
West Bengal
Bihar
Uttar Pradesh
Jharkhand