After Maharashtra, Delhi government is likely to slash value added tax (VAT) on aviation turbine fuel (ATF), coming as a big relief for aviation industry,
top sources told Times Now. The discussions are still under the process, at the time of filing the report, and is likely to cut down to same level as ofMaharastra's revision. The move comes at a crucial time when Indian airlines are reeling under high jet fuel prices following the war in West Asia. The Maharashtra government has announced to reduce value added tax (VAT) on aviation turbine fuel (ATF) to 7% from the prevailing rate of 18%.The reduction in tax has been given till 14 November. As per the earlier reports, the central government was in active negotiations with four state governments to reduce VAT on ATF. The Ministry of Civil Aviation has been pushing the state governments in Delhi, Tamil Nadu, West Bengal and Maharashtra, the four states identified as levying the highest VAT on jet fuel. Earlier, Centre had reduced the export duties on diesel and ATF. On Friday, Centre announced the special additional excise duty on ATF exports to be cut to Rs 16/ltr from Rs 33/ltr. As per the Finance Ministry, the export duty (SAED) has been revised from Rs 55.5 per litre to Rs 23 per litre on diesel while on the Aviation Turbine Fuel (ATF) from Rs 42 per litre to Rs 33 per litre. Meanwhile, the export duty on Petrol continues to remain nil. Amid the West Asia crisis, the Indian aviation industry is facing certain issues like air space closures, uncertain operations, spike in ATF prices. Export duties on diesel and aviation turbine fuel (ATF) were first introduced by the government on March 26 at rates of Rs 21.5 per litre and Rs 29.5 per litre, respectively. The duties were then substantially raised on April 11, before the government eased them partially during its April 30 review.
