The Tamil Nadu government has taken a significant step towards making air travel more affordable by reducing the VAT rates on aviation fuel (ATF) used in aircraft at the state's airports.
Specifically, the tax at Chennai airport was reduced from 29% to 16%, while at other airports in the state, the rate was lowered to just 1%.
The Minister of Civil Aviation, Ram Mohan Naidu, and the airline Indigo highly praised this government decision. Ram Mohan Naidu publicly thanked the Chief Minister, Vijay, for this initiative, calling it a favorable step for the aviation industry.
He emphasized the need for collaboration between central and regional governments to ensure the accessibility of air transport.
The airline Indigo also expressed its appreciation to the Vijay government, noting that the decision is welcomed. The company stated that this move will contribute to the development of tourism and the strengthening of air connectivity.
Indigo added that such measures strengthen air links, support the state's economic development, and contribute to forming a better aviation ecosystem in India.
It was noted that the decision to reduce taxes on jet fuel was made by the Tamil Nadu government on Friday. At Chennai airport, the VAT is now 16% instead of the previous 29%, and at the other airports in the state, it has been reduced to 1%.