Centre urges Delhi to cut jet fuel VAT to 4% citing Noida airport's lower rates

The Union government has urged the Delhi government to slash the value added tax (VAT) on jet fuel from 25% to 4%, citing lower levies in 25 other states and Union territories, including Uttar Pradesh, which will likely operationalise a new international airport in the national capital region at Greater Noida.

- Neha LM Tripathi

NEW DELHI:

The appeal was made by civil aviation minister Ram Mohan Naidu in a letter dated March 19 and addressed to Delhi's chief minister Rekha Gupta.

There was no such rate change proposed in the Budget presented by Gupta on Monday.

The minister stated that civil aviation is highly price-sensitive, and at the same time, connectivity directly promotes tourism growth, output growth, and employment, in addition to various indirect benefits to the economy.