Govt Weighs Tax Cuts, Margin Relief to Ease Pressure on Aviation Sector

The Group of Ministers (GoM) chaired by the Defence Minister has discussed a set of measures to ease the financial strain on the aviation industry amid soaring prices of Aviation Turbine Fuel (ATF). Sources indicate that the Aviation Minister has urged the GoM to consider a reduction in central taxes for immediate relief, while also recommending that states lower Value Added Tax on ATF — which currently varies from 1% to 30% across the country. Major states like Delhi, Maharashtra, and Tamil Nadu levy some of the highest VAT rates at 20–30%. The Oil Ministry has additionally been asked to explore whether oil marketing companies can cut their profit margins on ATF sales. The government is expected to finalise and announce a relief package soon to cushion airlines from mounting operating costs and preserve industry stability.