Delhi must rationalise its VAT rate for jet fuel

The Delhi government would do well to respond positively to the Union civil aviation ministry's suggestion on reducing the value-added tax (VAT) it charges on aviation turbine fuel (ATF).

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Delhi airport saw a record 80 million passengers last year despite a 25% VAT on ATF, but this could change once the new airport in Jewar in Uttar Pradesh (UP) becomes operational. UP has said it will be charging a much lower 1%; indeed, 25 states and Union territories charge VAT between 1% and 4%.