Air India Thanks Tamil Nadu CM Vijay for Cutting Aviation Fuel Tax

Air India has thanked Tamil Nadu Chief Minister C. Joseph Vijay and the state government for reducing the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) supplied to scheduled airlines. In a post on X on October 24, the airline welcomed the decision to reduce the tax rate at Chennai Airport from 29% to 16%, and to 1% at other airports across the state. Air India said the move would help lower airlines’ operating costs and improve air connectivity in Tamil Nadu. The airline also expressed its intention to strengthen its network and provide better services to passengers in the state.

The Tamil Nadu government announced the revised rates on October 23, following concerns from airlines about the high tax burden on aviation fuel. According to notifications issued by the Commercial Taxes and Registration Department, the new rates will come into effect on November 1, 2026, and remain in force until October 31, 2027. Under the revised structure, scheduled airlines refuelling at Chennai will pay 16% VAT, while those refuelling at airports such as Coimbatore, Madurai and Tiruchirappalli will pay 1%. The reduction is expected to support airline operations and regional connectivity, although any impact on ticket prices will depend on airlines’ individual pricing decisions.