Delhi govt cuts VAT on aviation turbine fuel from 25% to 7%
Delhi government slashes VAT on aviation turbine fuel to 7%, down from 25%, effective 17 May 2026. Move aimed at reducing airline costs.
The Delhi government has reduced the Value Added Tax (VAT) on aviation turbine fuel (ATF) from 25% to 7%. The decision takes effect from 17 May 2026.
Delhi, VAT, aviation turbine fuel, ATF, fuel tax, Delhi government, airline fuel, tax reduction, 17 May 2026, breaking news
The Delhi government has reduced the Value Added Tax (VAT) on aviation turbine fuel (ATF) from 25% to 7%, effective from 17 May 2026. The move is expected to lower operational costs for airlines operating out of the national capital.
Aviation turbine fuel is a major expense for carriers, and the steep reduction in VAT — from a quarter of the fuel price to under a tenth — could lead to lower airfares on routes originating from Delhi. The Delhi government’s decision brings the tax rate closer to levels seen in several other states.
No further details on the rationale or expected impact were provided in the announcement.
