Delhi Govt Slashes VAT On Jet Fuel From 25% To 7% Amid West Asia Crisis

Last Updated:May 16, 2026, 19:20 IST

Delhi cuts VAT on aviation turbine fuel from 25 to 7 under Chief Minister Rekha Gupta, following Maharashtra.

Following Maharashtra’s move to lower taxes on aviation turbine fuel (ATF), the Delhi government on Saturday announced a major relief measure for the aviation sector by sharply reducing Value Added Tax (VAT) on jet fuel.

Under the leadership of Chief Minister Rekha Gupta, the Delhi Cabinet has decided to bring down VAT on ATF from 25 per cent to 7 per cent. The reduction is expected to ease operational costs for airlines and could eventually benefit passengers as well.

The decision comes at a time when Indian carriers are struggling with soaring fuel expenses triggered by tensions in West Asia, which have also caused airspace disruptions and operational uncertainty for airlines.

Maharashtra Cuts VAT On Aviation Fuel

Earlier, the Maharashtra government had reduced VAT on ATF from 18 per cent to 7 per cent, with the revised rate remaining effective until November 14.

The Centre had been engaging with several states, including Tamil Nadu, West Bengal and Maharashtra, urging them to lower VAT rates on jet fuel, which forms a major portion of airline operating costs.

In parallel, the Union government has revised export duties on petroleum products. On Friday, it announced a cut in the special additional excise duty (SAED) on ATF exports from Rs 33 per litre to Rs 16 per litre.

According to the Finance Ministry, export duty on diesel was also reduced from Rs 55.5 per litre to Rs 23 per litre.

The government had first imposed export duties on diesel and ATF on March 26 at rates of Rs 21.5 per litre and Rs 29.5 per litre, respectively. These were significantly increased on April 11 before being partially eased during a review conducted on April 30.

News india Delhi Govt Slashes VAT On Jet Fuel From 25% To 7% Amid West Asia Crisis

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