The Union Civil Aviation Minister, Ram Mohan Naidu, praised the Delhi government’s decision to slash Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 25% to 7%. This move is aimed at supporting airlines facing global cost pressures and ensuring affordable air travel for passengers. Naidu commended Delhi Chief Minister Rekha Gupta for the timely action, aligning with similar initiatives in states like Maharashtra to aid the aviation sector.
Acknowledging the challenges in the aviation industry due to global operational and cost pressures, Naidu emphasized that such proactive state measures offer crucial backing to airlines, maintaining cost-effective air travel for passengers. With Delhi being a major aviation hub in India, this reduction in VAT is expected to enhance operational efficiency and sustain affordable connectivity for the multitude of daily passengers.
The minister highlighted that the decision signifies a positive and passenger-centric approach towards strengthening India’s aviation ecosystem. He expressed gratitude to the Delhi Government for this supportive intervention, emphasizing the benefits it would bring to the aviation sector and the passengers it serves. Lowering state taxes on ATF, a significant cost element for airlines, is anticipated to alleviate operational expenses for carriers operating from Delhi.
