Goa will reduce value-added tax (VAT) on one category of aviation turbine fuel (ATF) to 7% from 15% on Oct. 24, a reported change that could lower the tax on eligible airline fuel purchases in the state.
The Economic Times and Mint reported Oct. 23, citing a Goa Finance Department notification, that the new rate covers the Schedule C category “Aviation Turbine Fuel other than covered by entry (1) above.”
The department’s March 21, 2024, notification set a 15% rate for that category from April 1, 2024. An earlier notice lowered the rate from 18% to 8%, effective Jan. 3, 2023. The reported cut would bring the rate below the 15% level that followed the earlier reduction.
For airlines, the effect would apply to qualifying fuel purchases in Goa. The reports did not estimate possible savings or report any fare changes; the benefit for each carrier would depend on its eligible purchases and refueling arrangements. The 7% rate is reported to take effect Oct. 24.
