India, May 17 -- The Delhi government on Friday reduced the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 25% to 7% for a period of six months, citing rising financial pressure on the aviation sector amid recent global geopolitical developments.

Announcing the Cabinet decision, chief minister Rekha Gupta said the move was aimed at maintaining Delhi's economic competitiveness and supporting aviation, tourism and logistics activities in the Capital.

"The concessional VAT rate on ATF will initially remain in force for six months. The decision has been taken in the interest of both the nation and Delhi," Gupta said, adding that the measure could result in an estimated revenue loss of nearly Rs.985 crore to the Delhi government....