The decision comes amid global uncertainty in fuel prices due to ongoing conflict in West Asia.
Delhi Government Slashes VAT on Aviation Fuel from 25% to 7%, Airfare Impact Expected
The Delhi government has reduced the value-added tax (VAT) on aviation turbine fuel (ATF) from 25 percent to 7 percent, officials said on Saturday. The decision was approved during a cabinet meeting chaired by Chief Minister Rekha Gupta.
According to an official statement, the move is expected to benefit both airline operators and passengers by lowering operating costs and potentially easing airfares. ATF is a key input cost for airlines, and changes in its taxation structure often have a direct impact on ticket pricing and industry margins.
The decision comes amid global uncertainty in fuel prices due to ongoing conflict in West Asia, which has kept crude oil markets volatile. The government said the revised tax rate aims to provide relief to the aviation sector while improving overall cost efficiency in air travel operations.
