Delhi Urged to Cut Jet Fuel VAT to Stay Competitive Amid Noida Airport’s Low Rates

The Union civil aviation ministry has asked the Delhi government to cut VAT on aviation turbine fuel (ATF) from 25% to 4%, threatening flight diversion to the upcoming Noida International Airport, which has a much lower VAT rate of 1%. The airlines use 40-45% of their operating expenses towards fuel...

The Union civil aviation ministry has asked the Delhi government to cut VAT on aviation turbine fuel (ATF) from 25% to 4%, threatening flight diversion to the upcoming Noida International Airport, which has a much lower VAT rate of 1%. The airlines use 40-45% of their operating expenses towards fuel, and the high tax in Delhi is a major disadvantage. Civil Aviation Minister Ram Mohan Naidu stressed that reducing VAT would enhance airline competitiveness, get in more air traffic, and spur tourism and jobs in Delhi. At present, 25 states and UTs charge VAT ranging from 1% to 4%, with Delhi being among the few having exorbitantly high rates. Industry leaders and organizations like ASSOCHAM have also expressed their concern, urging immediate action to prevent economic losses and maintain Indira Gandhi International Airport as a premier hub. Source: Hindustan Times, Economic Times