MUMBAI, 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 regional connectivity scheme and 5% at other smaller airports in the state. The revised 7% VAT will apply to domestic flight operations, while international aircraft continue to remain exempt from VAT on fuel. The decision comes amid concerns over rising airfares triggered by volatile crude oil prices, airspace disruptions and operational uncertainties linked to the West Asia conflict. ATF is one of the biggest operational costs for airlines. The Centre had urged states with the highest VAT rates on ATF to reduce taxes to provide relief to airlines and passengers. Tamil Nadu currently levies the highest VAT at 29%, followed by West Bengal at 25%, Delhi at 20% and Maharashtra at 18%. A senior finance department official said the Centre had requested states to reduce VAT to 1% to 4% for six months. "Considering the state's financial situation, Maharashtra decided to reduce VAT by 11 percentage points instead....