Domestic air travel from Delhi is likely to get government cheaper with the Delhi government deciding to cut value added tax on aircraft turbine fuel (ATF) to 1% from the existing rate of 25% .
As part of the central government’s connectivity scheme, the Delhi government reduced VAT on ATF by 24% to boost links with smaller airports in its budget for the year 2017-18 announced on Wednesday.
“The central government had asked airports part of the regional connectivity scheme to reduce the VAT on ATF. Delhi was not part of it but we proactively reduced VAT so that Delhi can be connected with smaller airports, specially to the northeast,” Deputy chief minister Manish Sisodia said.
Chief minister Arvind Kejriwal praised the decision and said this would lead to air tickets getting cheaper.
“With this, new airlines can come and operate from Delhi. ATF decides flight ticket rates and this will be a huge bonus for fliers,” said a finance department official.