The governments of Delhi and Maharashtra have reduced the VAT on Aviation Turbine Fuel (ATF) to 7%, providing a significant boost to the aviation sector. The measure is aimed at lowering operational costs for airlines and enhancing the competitiveness of key aviation hubs, particularly at a time when carriers continue to face pressure from elevated fuel prices and geopolitical disruptions affecting international operations.
As fuel constitutes a substantial portion of airline operating expenses, the reduction in ATF taxation is expected to improve cost efficiencies and support route viability. The move also aligns with broader efforts to promote aviation growth, strengthen regional connectivity and create a more favourable operating environment for domestic and international carriers.
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