New Delhi, May 17 Welcoming the Delhi government’s decision to reduce Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) 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.
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