- Tamil Nadu cut VAT on aviation fuel from 29% to 16% at Chennai airport and 1% elsewhere
- Civil Aviation Minister Ram Mohan Naidu praised it as a positive move for aviation sector
- The VAT cut could lower ticket prices and see airlines expand their fleet schedules
For Tamil Nadu Chief Minister Vijay, praise has poured in from an unexpected quarter. A move by the superstar's government seeking to offer relief to the aviation sector has drawn appreciation from Civil Aviation Minister Ram Mohan Naidu.
The Tamil Nadu government had yesterday cut 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.
Rammohan Nadu hailed it as a welcome step and thanked Vijay.
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"Appreciate the Tamil Nadu Government's decision to reduce VAT on Aviation Turbine Fuel (ATF), a welcome step for the aviation sector. Thank you to Hon'ble Chief Minister Thiru Vijay for this initiative. Making air travel more affordable requires the Centre and States to work together. Our shared priority must always be the passengers," the Union minister wrote on X.
Tamil Nadu's 29% VAT on aviation fuel was earlier one of the highest in the country, which forced airlines to limit refuelling in Chennai. The reduction could now make tickets cheaper, and see airlines expand their fleet schedules, and help Chennai become a prominent refuelling hub.
The changes will apply for a year from midnight on November 1, according to a government notification.
READ | "Tamil Is Our Lifeline": Vijay's Challenge Amid Centre's Vande Mataram Push
The TVK, which shares power with the Congress in Tamil Nadu, is often seen as opposed to several policies of the Centre, including the three-language policy and the row over the National Song.
Last month, Vijay had challenged the Centre's directive to play Vande Mataram first in order at government events, after the assembly passed a resolution for the Tamil song 'Tamil Thai Vazthu' to be sung first at the beginning of government events. "Giving the first place to Tamil Thai Vazthu is our right," Vijay had then said in the assembly.
The TVK has also accused the Centre of trying to impose Hindi on non-Hindi-speaking states.
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