The proposal is part of the Budget presented in the Assembly by Chief Minister Manohar Parrikar, who also holds the finance portfolio.
The refund offer is part of the civil aviation policy, which seeks to make Goa an aviation hub and encourage more flights so as to boost tourist arrivals, he said.
The government is ready to refund the 12 per cent VAT levied on ATF for airlines who have at least four aircraft parked overnight at Dabolim (Goa airport) and operate early morning flights from there, Parrikar said.
Goa currently gets over one million holiday-makers every year.
The policy will help Goa increase its connectivity with Tier II and Tier III cities, the Chief Minister said.