Goa · 26 October 2026

Goa cuts the tax on aviation fuel from 15% to 7% to support air connectivity

The lower VAT on jet fuel applies from 24 October 2026, as the winter tourist season starts. Airlines have welcomed it, but no fare cuts have been announced.

By REMAX Shree Vinayak, New Delhi ·

What happened

The Goa government has reduced value added tax (VAT) on aviation turbine fuel from 15% to 7%, with effect from 24 October 2026. The state’s Department of Finance (Revenue and Control) issued the notification on 23 October, amending Schedule C of the Goa Value Added Tax Act, 2005, Angel One reported on 24 October. The 15% rate had applied since March 2024.

Union Civil Aviation Minister Ram Mohan Naidu Kinjarapu welcomed the move, saying lower fuel costs can support airlines and strengthen connectivity, according to an ANI report carried by Asianet Newsable on 24 October. Air India and IndiGo also welcomed the decision and urged other states to follow.

Aviation fuel sits outside GST, so each state sets its own VAT on it. No airline has announced fare changes alongside the cut, and lower fuel taxes do not automatically lead to cheaper tickets.

Sources

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