The Delhi government has announced a significant reduction in the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 25% to 7% for a duration of six months. Chief Minister Rekha Gupta stated that this decision is aimed at addressing the rising financial pressures on the aviation sector, which have been exacerbated by recent global geopolitical developments. The reduced VAT rate is expected to enhance Delhi's economic competitiveness and bolster tourism and logistics activities within the capital. Officials noted that ATF represents nearly 40% of airlines' operational costs, and the high tax rates previously imposed directly influenced ticket prices and the overall financial health of airlines. The government anticipates that this reduction will lead to an estimated revenue loss of nearly ₹985 crore (approximately $119 million USD). Notably, the VAT on ATF had contributed around ₹1,368 crore (about $165 million USD) annually, accounting for approximately 19% of Delhi's total VAT collection. Gupta emphasized that this measure is in line with Prime Minister Narendra Modi's focus on improving connectivity and stimulating economic activity, particularly at the Indira Gandhi International Airport.