New Delhi, May 17: Following Maharashtra’s lead, the Delhi government has reduced the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 25% to 7%. This move aims to make air travel more affordable for passengers and provide relief to airlines amid the ongoing crisis in the Middle East. Central Civil Aviation Minister Ram Mohan Naidu announced this decision on social media.
Naidu praised Delhi Chief Minister Rekha Gupta’s commendable decision to lower VAT on ATF, similar to Maharashtra’s recent actions. He emphasized that this decision comes at a time when the entire aviation sector is facing challenges and cost pressures in global operations. Such measures by governments will support airlines and make travel more economical for passengers.
As one of the busiest aviation hubs in the country, Delhi stands to benefit significantly from this decision, improving operational stability and ensuring affordable connectivity for millions of travelers daily.
This decision by the Delhi government follows a request from the central government urging states to reduce VAT on aviation fuel to control high prices during tensions in the Middle East.
According to the notification issued by the Delhi government, the new VAT on ATF will now be “seven paise per rupee,” down from the previous 25 paise. This new VAT rate will be valid for the next six months from the date of the notification.
Previously, the Maharashtra government had also reduced the VAT on ATF from 18% to 7%. The notification from Maharashtra stated that the VAT on ATF would be effective from May 15, 2026, until November 14, 2026, under the Maharashtra Value Added Tax Act, 2002.
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