Delhi reduces VAT on ATF to 1% for regional flights; other states to announce the same soon

Mar 08, 2017: The Delhi government has announced a cut in Value Added Tax (VAT) on jet fuel for regional flights flying out of Delhi airport.

VAT on Aviation Turbine Fuel (ATF) for regional flights will now be charged at the rate of 1 per cent from earlier 25 per cent in Delhi, announced Delhi's deputy chief minister and finance minister Manish Sisodia.

The move comes after a request was made on part of the aviation ministry in February this year.

Various airlines have welcomed the move.

“This is a welcome move, which will help reduce costs and, in turn, help bring down fares for flights to smaller airports in the country. We support all initiatives that help reduce fares for our consumers,” said Ajay Singh, CMD, SpiceJet.

According to Centre's directive under regional connectivity scheme, other state governments will also have to reduce the VAT to 1 per cent on jet fuel.