Delhi ATF VAT Cut to 7%: Boost for Airlines

Delhi Slashes ATF VAT to 7%, Boosting Airlines and Affordable Travel

Delhi government reduces VAT on Aviation Turbine Fuel from 25% to 7%, a move welcomed by Union Civil Aviation Minister Ram Mohan Naidu. The minister said the decision provides crucial support to airlines facing global cost pressures and helps keep air travel affordable. As one of India's busiest aviation hubs, Delhi will benefit from improved operational stability and continued connectivity for lakhs of daily passengers. The reduction follows similar measures by states like Maharashtra, reflecting a passenger-centric approach to strengthen India's aviation ecosystem.

Delhi's decision to cut ATF VAT to 7 pc will support airlines, keep air travel affordable: Aviation Minister

New Delhi, May 17

Welcoming the Delhi government's decision to reduce Value Added Tax on Aviation Turbine Fuel from 25 per cent to 7 per cent, Union Civil Aviation Minister Ram Mohan Naidu said the move would provide much-needed support to airlines amid global cost pressures and help ensure affordable connectivity for passengers.

In a statement, the minister appreciated the "timely decision" taken by Delhi Chief Minister Rekha Gupta and the Delhi government, saying the reduction follows similar steps taken by states such as Maharashtra to support the aviation sector.

"At a time when the aviation sector continues to face global operational and cost pressures, such proactive measures by State Governments provide much-needed support to airlines and help keep air travel affordable for passengers," Naidu said.

He noted that Delhi, being one of the country's busiest aviation hubs, would particularly benefit from the reduction through improved operational stability and continued affordable connectivity for lakhs of passengers travelling daily.

The minister further said the decision reflects a positive and passenger-centric approach towards strengthening India's aviation ecosystem. "I thank the Delhi Government for this positive and passenger-centric intervention in support of India's aviation sector," he added.

"Delhi, being one of the country's busiest aviation hubs, will particularly benefit from this decision through improved operational stability and continued affordable connectivity for lakhs of daily passengers," the minister stated.

ATF is one of the largest cost components for airlines, and lower state taxes on the fuel are expected to reduce operational expenses for carriers operating from the national capital.

"I thank the Delhi Government for this positive and passenger-centric intervention in support of India's aviation sector," he mentioned.

— IANS

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Reader Comments

Sneha F

Good step by Delhi government, but I'm skeptical about how much of this benefit will actually reach the common passenger. Airlines have a history of keeping the savings for themselves. We need regulatory oversight to ensure fare reductions.

James A

As someone who travels to Delhi frequently for work, this is welcome news. The cost of aviation fuel has been a major concern globally. This VAT reduction will definitely help in keeping domestic air travel affordable for millions of Indians.

Rohit L

This is what we call cooperative federalism! Delhi following Maharashtra's lead shows that states are finally working together to boost the aviation sector. But why stop at 7%? Some states have even lower rates. Still, a step in the right direction! 🛫

Kavya N

While this is a positive move for airlines and frequent travelers, what about the common man who can't afford flights anyway? The government should also focus on improving railway infrastructure for those who rely on trains for affordable travel.

Rajesh Q

Good move but we need to see the fine print. Will airlines pass on the savings? Last time when fuel prices dropped, ticket prices didn't come down proportionally. The DGCA should monitor fare movements post this decision. Only then will passengers truly benefit.

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Delhi Slashes ATF VAT to 7%, Boosting Airlines and Affordable Travel

Delhi's decision to cut ATF VAT to 7 pc will support airlines, keep air travel affordable: Aviation Minister

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