CTI Advocates VAT Cut to Retain Delhi's Aviation Edge

The Chamber of Trade and Industry (CTI) has urged Delhi's Chief Minister to reduce the VAT on Aviation Turbine Fuel to prevent airlines from shifting their operations to Jewar Airport due to cost advantages. By lowering this tax, Delhi could maintain its status as a preferred aviation hub.

The Chamber of Trade and Industry (CTI) has officially appealed to Delhi's Chief Minister, Rekha Gupta, advocating for a reduction in the Value Added Tax (VAT) imposed on Aviation Turbine Fuel (ATF). This move aims to deter airlines from rerouting flights to the more economically attractive Jewar Airport in Noida.

CTI Chairman, Brijesh Goyal, highlighted that Delhi's current VAT rate of 25 percent on ATF is significantly higher than the mere 1 percent rate in Uttar Pradesh, as revised in December 2024. This disparity, he warns, makes flight operations through Delhi substantially more expensive.

CTI's General Secretary, Gurmeet Arora, underscored that lower operational costs in UP could lead to more affordable airfares in Jewar compared to Delhi's Indira Gandhi International Airport, potentially causing a passenger shift. The CTI is pressing for a tax reevaluation to keep Delhi competitive in the aviation sector.

(With inputs from agencies.)