Notification No. 23/2026- Central Excise, Dated 15-05-2026
The Central Government has amended Notification No. 08/2026-Central Excise dated 26 March 2026 to revise the rate of Special Additional Excise Duty (SAED) applicable on Aviation Turbine Fuel (ATF).
1. Reduction in SAED on ATF
Pursuant to the amendment, the Special Additional Excise Duty on Aviation Turbine Fuel has been reduced from:
- Rs. 42 per litre to
- Rs. 16 per litre
The revised rate represents a significant reduction in excise duty applicable on ATF.
2. Effective Date of the Amendment
The amended rate of SAED on Aviation Turbine Fuel shall come into effect from 16 May 2026.
3. Impact of the Revision
The reduction in SAED is expected to lower the tax burden on ATF and may provide relief to the aviation sector by reducing fuel-related operational costs.
Since Aviation Turbine Fuel constitutes a major component of airline operating expenses, the duty reduction may positively impact aviation industry cost structures.
4. Amendment to Existing Central Excise Notification
The change has been carried out through an amendment to Notification No. 08/2026-Central Excise dated 26 March 2026 issued under the Central Excise framework governing levy of Special Additional Excise Duty on petroleum products.
5. Objective of the Amendment
The revision appears to be aimed at rationalising excise duty rates on ATF in line with prevailing market conditions and supporting the aviation sector through reduction in fuel taxation.
