Air travel from Delhi to remote places within the country is set to become cheaper as the Delhi government on Wednesday announced a massive reduction in VAT on Air Turbine Fuel (ATF) from the existing 25 per cent to a mere 1 per cent.

The tax reduction will be applicable for flights destined to locations covered under the central government's Regional Connectivity Scheme (RCS) aimed at improving connectivity with remote areas, Delhi Finance Minister Manish Sisodia announced on Wednesday.

Presenting the Budget for the financial year 2017-18 in the Delhi Assembly here, Sisodia, who is also the Deputy Chief Minister, said the move would give a boost to the civil aviation operators who have opted to ply flights on RCS routes involving Delhi.

"Delhi was not in the list of the airports under RCS which were asked by the Centre to reduce VAT on ATF. We have decided to voluntarily participate in it and are reducing VAT on jet fuel to one per cent from existing 25 per cent," Sisodia said.
 

He added that this move would strengthen Delhi's connectivity with the smaller airports, especially the northeast.

Delhi Chief minister Arvind Kejriwal lauded the government's decision and said this would create new avenues for the beginner airlines to operate from Delhi.