The Centre has urged the Delhi government to reduce VAT on Aviation Turbine Fuel (ATF) from 25% to 1–4%, warning of possible flight diversions to nearby airports like Noida, which will levy just 1%. High ATF VAT in Delhi makes fuel costlier, impacting airline operations and Delhi airport’s competitiveness. While 31 states have already slashed VAT on ATF, Delhi remains among the few with a high rate. Civil Aviation Minister Jyotiraditya Scindia emphasized that lowering VAT would boost connectivity, tourism, and jobs. A failure to act could result in reduced traffic and revenue for Delhi’s Indira Gandhi International Airport.
