IndiGo has welcomed Goa's decision to reduce VAT on Aviation Turbine Fuel to 7 percent, expecting the move to improve air connectivity, boost tourism, and potentially lower costs for passengers as the policy takes effect on October 24, 2026.
IndiGo Welcomes Goa's Move on Aviation Fuel Tax
IndiGo has 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 airline's response comes as the Goa government notified 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 will take effect on October 24, 2026.
In a post on X, IndiGo thanked Chief Minister Pramod Sawant for the decision and expressed hope that other states would consider similar measures amid elevated aviation fuel costs. “We sincerely thank the Hon’ble Chief Minister of Goa, @DrPramodPSawant, for the progressive decision to rationalise VAT on Aviation Turbine Fuel in the state,” the airline said. “This is a welcome move towards strengthening the aviation ecosystem, enhancing air connectivity and supporting Goa’s vibrant tourism sector,” it added.
Pushing for Wider Aviation Accessibility
IndiGo linked its appeal for similar measures elsewhere to the need to make flying more accessible for passengers. “We hope this progressive approach inspires others to consider similar measures, particularly at a time when ATF costs remain high, to help make air travel more accessible for customers,” the airline said.
The government notification, issued by the Department of Finance (Revenue and Control) on October 23, substitutes the existing entry at serial number two in Schedule C of the state's VAT legislation. The revised entry prescribes a 7 per cent rate for “Aviation Turbine Fuel other than covered by entry (1) above,” retaining a distinction between this category and fuel covered under the preceding entry. Signed by Under Secretary Finance (Revenue and Control) Naresh Gaude, the notification was issued by order and in the name of the Governor of Goa.
IndiGo also thanked the chief minister for his continued commitment to aviation growth. While the airline highlighted the potential benefits for connectivity, tourism and accessibility, its statement did not announce any corresponding change in ticket prices.
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