Airlines demand release of VAT relief funds on aviation fuel

Indian airlines have requested the release of pending funds resulting from value-added tax relief on aviation turbine fuel (ATF). The carriers cite operational challenges and rising costs as reasons for expediting the clearance of these dues.

The VAT relief on ATF was implemented to support the aviation sector, but outstanding payments related to the exemption remain pending with authorities. Airlines argue that timely release of these funds is critical for maintaining financial stability and supporting fleet operations.

The issue reflects ongoing tensions between the aviation industry and government agencies over tax incentives and their implementation. Industry representatives have urged relevant departments to prioritize resolution of the pending payments.