India, May 16 -- Responding to Prime Minister Narendra Modi's appeal to reduce taxes on aviation fuel amid rising global crude oil prices and the ongoing West Asia crisis, the Maharashtra government has slashed Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 18% to 7% for six months. Officials said the move is expected to result in an annual revenue loss of around Rs.550 crore to Rs.600 crore to the state exchequer.

The state government issued the notification on May 14, with the revised tax structure coming into effect from Friday and remaining in force till November 14, 2026.

At present, Maharashtra levies 18% VAT on ATF at Mumbai, Navi Mumbai and Pune airports. The tax is 1% at six airports covered under the Centre's UDAN r...