After slashing VAT on jet fuel, Tamil Nadu government asks airlines to add more services from Chennai airport
Sources say that after reduction of VAT from 29% to 16%, the airlines have assured the government that they would increase the number of flights, but haven’t given a time-frame for implementation
- ✓Sources say that after reduction of VAT from 29% to 16%, the airlines have assured the government that they would increase the number of flights, but haven’t given a time-frame for implementation
- ✓Primary Authority: Official communique verified from The Hindu National.
- ✓Civic Domain: Categorized under states public notices.
In a bid to boost connectivity, the Tamil Nadu government has reached out to various airlines to increase the number of flights and serve more destinations, both domestic and abroad from Chennai airport. In recent times, quite a few meetings were held between the Tamil Nadu government, Airports Authority of India (AAI) and the airlines, and whenever the government had asked them to add more flights and expand connectivity, one of the primary demands of the airlines was that Value Added Tax (VAT) on aviation turbine fuel (ATF) be decreased.
As jet fuel accounts for a considerable portion of an airline’s operating cost, the airlines, AAI, and the Ministry of Civil Aviation too had been pushing for reduction in VAT for a while. Sources said that the airlines were happy after the government announced the steep cut in VAT on ATF at Chennai airport from 29 per cent to 16 per cent, and have assured the government of expanding services from Chennai airport.
“We have been constantly persuading them to connect more destinations. Now that VAT has been slashed, the airline representatives have agreed to add more flights. We hope to see a difference soon,” a source said. The government has requested one of the airlines for a direct flight to Japan from Chennai.
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| Issuing Authority | The Hindu National |
|---|---|
| Topic Category | STATES |
| Jurisdiction | All India / National |
| Publication Date | 26 October 2026 |