Big decision of Delhi Rekha government: VAT on ATF in Delhi reduced from 25% to 7%, airlines companies and passengers will get relief.

Delhi Chief Minister Rekha Gupta government has decided to reduce VAT on Aircraft Turbine Fuel (ATF), giving a big relief to the aviation sector. Now only 7% tax will have to be paid on ATF in Delhi instead of 25%. The state finance department has issued a notification in this regard. This huge reduction in VAT will reduce the operating costs of airlines and help in maintaining stable airfares for passengers.

Main effects of this decision

Jet fuel accounts for about 35 to 40 percent of the total expenses of any airline. Airlines companies will directly benefit from this huge reduction, due to which passengers will also get the benefit of lower fares. Recently, Maharashtra also reduced VAT on ATF to 7%. The move will help Delhi Airport (IGI) counter tax competition from other regional airports. This public-friendly step of the state government will reduce the financial burden of aviation companies and will promote the movement of aircraft in Delhi.