Chennai: The Tamil Nadu government has announced a reduction in Value Added Tax on aviation turbine fuel for scheduled carriers operating across airports within the state. Under the revised tax structure, the levy at Chennai Airport has been lowered from 29 percent to 16 percent, while the rate at all other airports across Tamil Nadu has been drastically reduced to just 1 percent.
The policy shift drew praise from federal leadership, with the Union Aviation Minister welcoming the fiscal relief. The minister emphasized the importance of cooperative efforts between the central government and state administrations to improve infrastructure and lower operational barriers in the aviation sector.
Major airline carrier IndiGo also commended the decision, expressing appreciation to Chief Minister Vijay for implementing the tax adjustment. The airline noted that lowering the tax burden on aviation turbine fuel will help sustain the broader aviation industry, make regional routes more economically viable, and drive tourism growth throughout the state.