Tamil Nadu cuts VAT rate on aviation turbine fuel at Chennai airport from 29% to 16%
The Tamil Nadu government has reduced the VAT on aviation turbine fuel (ATF) at Chennai airport from 29% to 16%. Further reductions were implemented for other airports in the state to support the aviation sector and lower operating costs.
Why it matters
Lowering fuel taxes is a strategic economic move intended to make air travel more affordable and increase the competitiveness of regional airports.
Tamil Nadu cuts VAT rate on aviation turbine fuel at Chennai airport from 29% to 16% It has also reduced the VAT for scheduled airlines fuelling at airports other than Chennai from 29% to 1%. The rate has been reduced from 5% to 1% for scheduled airlines operating aircraft with a maximum take-off mass of less than 40,000 kg and fuelling at airports other than Chennai left The reduction in the VAT rate partially fulfils the long-standing demand of the Union government and the aviation sector. ATF accounts for a significant share of the airlines’ operating cost, with VAT being one of the major factors determining it. FILE PHOTO FILE PHOTO https://th-i.thgim.com/public/incoming/b97t7x/article71616405.ece/alternates/FREE_1200/BVR_7057.JPG VELANKANNI RAJ B CHENNAI, TAMIL NADU, 12/03/2026: Aviation fuel station at Chennai International Airport on Thursday. Photo: Velankanni Raj B/The Hindu.
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