Civil Aviation Ministry Reviewing Airlines’ Plea for Tax Relief Amid West Asia Fuel Crisis?

Amid rising global oil prices triggered by the ongoing West Asia fuel supply disruptions, Indian airlines have urged the government to consider tax relief measures to offset the steep surge in operational costs. Airline operators have approached the Ministry of Civil Aviation, seeking reductions in excise duty and state-level value-added tax (VAT) on aviation turbine fuel (ATF), which now accounts for more than half of their operating expenses. Sources said the Ministry is closely examining these representations and is in consultations with the finance and petroleum ministries to assess possible fiscal interventions. Officials indicated that while the government remains cautious about revenue implications, it recognises the industry’s financial strain and the downstream impact on airfares and passenger demand. The Civil Aviation Ministry has assured stakeholders that it is “closely monitoring the situation” and evaluating short-term support measures to stabilise the sector.