New Delhi, May 16 -- The Delhi government on Saturday decided to reduce the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 25 per cent to 7 per cent, according to the Chief Minister's Office (CMO).

Chief Minister Rekha Gupta informed that this lower tax rate will last for six months for now.

As per the release, this decision was made to help the struggling airline industry, which is facing tough times due to global issues. Even though this move helps the industry, it means the Delhi government will lose about Rs 985 crore in tax revenue.

The Chief Minister explained that this step matches the Prime Minister's goal to improve travel and boost business. The main aims are to lower costs for airlines, boost tourism, help shippin...