Delhi Govt Cuts VAT on Aviation Turbine Fuel to 7% After Maharashtra Amid West Asia War
The six-month reduction is expected to lower jet fuel costs and may cut Delhi government revenue by nearly Rs 985 crore, officials said.
- On Saturday, the Delhi Government reduced the Value Added Tax on Aviation Turbine Fuel from 25% to 7%, providing relief to airline operators and passengers at Indira Gandhi International Airport.
- Chief Minister Rekha Gupta stated the decision follows Prime Minister Narendra Modi's call to support the aviation sector and strengthen Delhi as a leading connectivity hub.
- The tax cut may cause an estimated revenue loss of nearly 985 crore for the Government, while VAT on ATF currently accounts for nearly 19% of total annual VAT collection.
- Although the Goods and Services Tax regime exists nationwide, states retain authority to levy VAT on petroleum products under the Seventh Schedule of the Constitution, leaving ATF outside the national GST system.
- Gupta announced the concessional 7% rate will remain applicable for six months; Delhi Airport recorded nearly 8 crore passengers during 2024-25, the highest volume in the country.
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Delhi Government Reduces VAT on Aviation Turbine Fuel from 25% to 7%
Get latest articles and stories on India at LatestLY. The Delhi government on Saturday decided to reduce the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 25 per cent to 7 per cent, according to the Chief Minister's Office (CMO). India News | Delhi Government Reduces VAT on Aviation Turbine Fuel from 25% to 7%.
Delhi govt cuts VAT on Aviation Turbine Fuel to 7% after Maharashtra amid West Asia war
The Delhi government, led by Rekha Gupta, has reduced the VAT on aviation turbine fuel from 25% to 7% during a Cabinet meeting, aiming to benefit airlines and passengers amid global fuel market instability by the ongoing conflict in West Asia.
Delhi govt cuts VAT on jet fuel; move to benefit airlines, passengers
Delhi has cut VAT on aviation turbine fuel from 25 per cent to 7 per cent after Maharashtra made a similar move. The step is aimed at easing pressure on airlines and passengers as global jet fuel prices climb.
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