Union Minister Ram Mohan Naidu, Air India welcome Goa govt's decision to reduce ATF VAT to 7%
New Delhi, October 24
Union Minister of Civil Aviation Ram Mohan Naidu Kinjarapu has welcomed the Goa government's decision to reduce the Value Added Tax on Aviation Turbine Fuel to 7 per cent, stating that the move will strengthen air connectivity and provide a boost to the state's tourism industry.
Hailing the initiative led by Goa Chief Minister Pramod Sawant, the Union Minister said that reducing fuel costs could support airlines, improve connectivity and benefit passengers, while contributing to the growth of the aviation sector.
In a post on X, Naidu wrote, "A welcome move by the Goa Government under the leadership of Hon'ble Chief Minister @DrPramodPSawant Ji to bring down ATF VAT to 7%."
"Lower fuel costs can support airlines, strengthen connectivity and give a further boost to Goa's tourism sector. Steps like these put passengers and the growth of aviation first," the Union Minister added.
Leading carrier Air India has welcomed the Goa government's decision to lower the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF), stating that the move will make the coastal state more accessible to travellers and give a significant boost to its tourism sector.
The airline also expressed hope that other states across the country would take a cue from Goa's initiative and rationalise fuel taxes to make air travel more affordable for passengers nationwide.
In a post on X, the airline expressed gratitude to Goa Chief Minister Pramod Sawant for the decision.
"Thank you, Hon'ble Chief Minister @DrPramodPSawant, for lowering VAT on Aviation Turbine Fuel in Goa. Goa is one of India's most loved destinations, and this move will make it easier for more travellers to reach its beaches, culture and hospitality," the airline said.
Advocating for broader tax rationalisation across the sector, Air India added, "We hope this inspires other states to follow, so that more people can fly and explore India. Air India is proud to bring the world to Goa, and Goa to the world."
Earlier on October 23, IndiGo welcomed the Goa government's decision to rationalise Value Added Tax (VAT) on Aviation Turbine Fuel (ATF), saying the move would support the aviation ecosystem, enhance air connectivity and strengthen the state's tourism sector.
The Goa government's decision follows a notification introducing a 7 per cent VAT rate for the ATF category covered under a revised entry in Schedule C of the Goa Value Added Tax Act, 2005. The notification came into effect on October 24, 2026.
— ANI
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