New Delhi: The Air Travellers Association (ATA) has urged the Delhi government to reconsider the high Value Added Tax (VAT) levied on Aviation Turbine Fuel (ATF), citing its adverse impact on passengers and the aviation sector at large. The issue, long a point of contention, was taken up formally after ATA addressed letters to both the Hon’ble Lieutenant Governor and the Chief Minister of Delhi.
In response, the Department of Trade and Taxes convened a meeting to deliberate on the matter. The meeting saw participation from key stakeholders, including representatives from airports, airlines, and the ATA.
During the meeting, ATA underscored that the existing VAT structure on ATF significantly increases operational costs for airlines, which in turn are passed on to consumers through higher ticket prices. The association called the tax burden “avoidable” and emphasized the need for immediate rationalization.
ATA Secretary General G.S. Bawa stated, “ATA is committed to advocating for the rights and interests of air travellers. We believe that rationalising ATF taxes will not only benefit passengers but also contribute to the growth of the aviation industry in Delhi. We appreciate the Delhi government’s willingness to engage with stakeholders and look forward to a favourable resolution.”
All participants at the meeting reportedly agreed on the necessity of reviewing the tax regime on ATF. The consensus was that more competitive fuel pricing could enhance air connectivity, promote tourism, and make Delhi a more attractive hub for both domestic and international airlines.
ATA noted that the meeting marks a significant step forward in addressing the long-standing issue. The association has expressed its intent to continue engaging with the Delhi government and industry stakeholders to press for a sustainable and passenger-friendly resolution.
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