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Business
Tamil Nadu slashes ATF VAT to 16% in Chennai, 1% at other airports
✍️ Business Standard
🗓 24 Oct 2026, 02:33 AM
👁 12
The Tamil Nadu government has reduced the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF), setting it at 16% for Chennai and 1% for other airports in the state.
The Tamil Nadu government has announced a significant reduction in the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) to lower operational costs for the aviation sector. The new tax structure differentiates between the state's primary gateway and its regional airports.
Under the revised rates, the VAT on ATF will be set at 16% for flights operating out of Chennai. This rate is notably lower than previous levels, aiming to make the state's main international hub more competitive.
For all other airports within Tamil Nadu, the government has slashed the VAT to just 1%. This aggressive reduction is intended to encourage air connectivity and boost tourism and business travel to smaller cities across the state.
The move is expected to have a direct impact on airline operating expenses, potentially leading to lower ticket prices or increased frequency of flights in the near future.
Under the revised rates, the VAT on ATF will be set at 16% for flights operating out of Chennai. This rate is notably lower than previous levels, aiming to make the state's main international hub more competitive.
For all other airports within Tamil Nadu, the government has slashed the VAT to just 1%. This aggressive reduction is intended to encourage air connectivity and boost tourism and business travel to smaller cities across the state.
The move is expected to have a direct impact on airline operating expenses, potentially leading to lower ticket prices or increased frequency of flights in the near future.