The Tamil Nadu government has reduced the value added tax (VAT) on aviation turbine fuel (ATF) from 29% to 16% at Chennai airport and to 1% at other airports in the state, a move praised by the Centre.
Why it matters: The reduction in VAT on aviation turbine fuel by Tamil Nadu can significantly impact the aviation sector by lowering operational costs for airlines, potentially leading to reduced airfares and increased connectivity.
Tamil Nadu's VAT Reduction on Aviation Fuel
The Tamil Nadu government has announced a significant reduction in the value added tax (VAT) on aviation turbine fuel (ATF). The VAT has been decreased from 29% to 16% at Chennai airport, and to an even lower rate of 1% at other airports across the state. This decision is aimed at boosting the aviation sector by reducing the operational costs for airlines.
Impact and Reception
This move has been welcomed by the Centre, highlighting its potential to enhance the competitiveness of the aviation sector in Tamil Nadu. Lowering the VAT on ATF can lead to reduced costs for airlines, which may translate into lower airfares and improved air connectivity within the state and beyond.
Key facts
- Tamil Nadu reduced VAT on ATF from 29% to 16% at Chennai airport.
- VAT on ATF reduced to 1% at other airports in Tamil Nadu.
- The move was praised by the Centre.
- Chennai airport is a major airport in Tamil Nadu.
In this story
Source: NDTV