Delhi's VAT Cut Sparks Aviation Industry Hope, But Challenges Remain The Delhi government's recent decision to reduce Value Added Tax (VAT) on aviation turbine fuel from 25% to 7% has sent shockwaves of optimism through the country's aviation industry.
This move is seen as a significant step towards making India a more attractive destination for airlines and airports. The reduction in VAT was long overdue, given the current economic climate.
Indian carriers have been struggling to stay afloat due to rising fuel costs and intense competition from low cost airlines.