November 21, 2015 8:26 AM

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Delhi Govt. makes an upward revision in VAT on Aviation Turbine Fuel

Flying out of the national capital might become costlier marginally with the Delhi government making an upward revision in the Value Added Tax on Aviation Turbine Fuel. The VAT has been increased from existing 20 per cent to 25 percent with effect from 16th of this month, according to a notification.A senior executive with an airline said they are assessing the impact of the hike and a final call on passing on this hike to the end-consumer will be taken in due course. As per Indian Oil Corporation website, jet fuel prices in Delhi currently stands at 44,846 rupees per kilolitre. Aviation Turbine Fuel constitutes approximately 40-50 per cent of an airline's operating cost.Meanwhile, Civil Aviation Minister Ashok Gajapathi Raju, has termed the hike as a step which would be like "taxing an economic activity to death, reports PTI.

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