Delhi International Airport Operator Calls for Jet Fuel Tax Parity Amid Jewar Expansion Plans

GMR Airports Seeks Reduction in Delhi VAT on Jet Fuel

GMR Airports, the operator of Delhi's Indira Gandhi International (IGI) airport, has submitted a proposal to the Delhi government, seeking a reduction in the value-added tax (VAT) on jet fuel to 1% from the current rate of 25%.

The steep VAT levy on jet fuel could potentially divert airlines and passengers to the upcoming Jewar airport in Uttar Pradesh, where the fuel is taxed at a significantly lower rate of 1%. This could have a negative impact on the revenue of the IGI airport, which is one of the busiest airports in the country.

The proposal by GMR Airports aims to level the playing field for the IGI airport, which is facing increased competition from the new Jewar airport. The reduction in VAT on jet fuel could help to make the IGI airport more attractive to airlines and passengers, thereby maintaining its market share.

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Key Figures:

• 25%: Current VAT rate on jet fuel in Delhi
• 1%: Proposed VAT rate on jet fuel in Delhi
• 1%: VAT rate on jet fuel in Uttar Pradesh (Jewar airport)