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Delhi Airport Highlights VAT Discrepancy Amidst Jewar Airport's Looming Traffic Impact
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Delhi Airport Flags VAT Disparity as Jewar Airport Threatens Traffic Shift
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CNBC TV18
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27-03-2026, 19:45
Delhi Airport Flags VAT Disparity as Jewar Airport Threatens Traffic Shift
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Delhi International Airport Ltd (DIAL) warns of 13-16% traffic shift to Jewar Airport due to VAT disparity on jet fuel.
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Delhi levies 25% VAT on jet fuel, while Uttar Pradesh (Jewar) charges only 1%, creating a significant cost difference for airlines.
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Airlines could save approximately ₹96,000 per Delhi-Mumbai flight by fueling in UP compared to ₹3,840 in Delhi.
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DIAL urges Delhi government to reduce ATF VAT from 25% to 1-4% to maintain competitiveness and preserve Delhi's hub status.
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IGI Airport contributes 17.89% to Delhi's GSDP and supports over 1.5 lakh jobs, highlighting its economic significance.
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