With a most bitter election campaign approaching boiling point, it was inevitable that there was limited scope for discussing other matters ~ and, of course, there is some truth to the charge that only the negative makes “news”. So, therefore, lost in the political thunderstorm was a rare instance of the fierce differences between the Central and Delhi governments being set aside and their functioning in what might even be hailed as “harmony”. Adhering to the Centre’s request for reducing the Value-Added Tax on aviation turbine fuel, the budget just presented by the Aam Aadmi Party government announced a VAT reduction from 25 per cent to one per cent on fuel being used by air services operating under the Regional Connectivity Scheme. True that Delhi airport is not included in the RCS, but there is every possibility of flights to and from the North-east availing of the lower fuel price ~ which would certainly be appreciated by the large number of people from that part of the country who study or find employment in the national Capital. People who it must be confessed have not found life in Delhi very comfortable. Whether the AAP government’s gesture will impact the larger situation is a matter to be watched. Anyway, it is a welcome “first”.

The reality will be known when the lower tax finds expression in terms of rupees and paise via the revised fares the airlines will offer. It is estimated that around 40 per cent of operating costs aref uel-related, and one travel expert has calculated that the new tax structure would result in a ten per cent reduction in fares. The civil aviation ministry has welcomed the Delhi move, now it must ensure the necessary follow-up action. There is need for immediate clarification on how a non-RCS airport like Delhi will benefit from the revised tax, and whether fares are to be calculated taking into account the ultimate destination of the passenger or if the “normal” rates will apply from Delhi to the “hub” from which an onward RCS flight is taken. In these days of “dynamic” pricing the passengers’ interests are not necessarily paramount.
The ministry must also persuade other states to follow the Delhi move so that regional connectivity becomes a reality, not a scheme only on paper. The links between the Capital and smaller towns in the region might not be as complex a matter as facilitating air travel to and from the North-east. There may be no immediate political advantage to be gained from the reduction in VAT on ATF, but it would help project the AAP as having “national” ambitions ~ and not in the somewhat divisive sense in which the BJP uses nationalism.

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