Agri and All Trade Chamber has welcomed the State government’s decision to reduce Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 29% to 16% at Chennai airport and to 1% at other airports.
In a press release, its senior president S. Rethinavelu said the progressive announcement would bring about a major transformation in air connectivity, particularly in Tier-II and Tier-III cities, and pave the way for balanced economic growth throughout Tamil Nadu.
It would also encourage airlines to introduce new flight services and increase the frequency of existing ones. It would improve the economic viability of domestic and connecting flight services while creating opportunities for additional international flight services, he added.
It would support the growth of spiritual, heritage, cultural, leisure and medical tourism in southern Tamil Nadu and create new opportunities for textiles, agricultural produce, food processing, manufacturing industries and export oriented businesses.
Further, it would facilitate the establishment of new industries, information technology companies, logistics hubs, tourism enterprises and hospitality businesses in the southern districts, thereby generating more employment opportunities.
The reduction in operating costs for airlines would create opportunities for competitive airfares and enable more people to use air travel. It would reduce dependence on Chennai and help Tier-II and Tier-III cities emerge as independent hubs of economic growth, he said.
Published - October 26, 2026 10:41 pm IST