Vijay gets rare praise from Centre after Tamil Nadu's big aviation move

The Tamil Nadu government has significantly reduced VAT on aviation turbine fuel across all airports in the state, offering relief to airlines amid sky-high crude prices.Tamil Nadu CM Vijay and Ram Mohan NaiduNew Delhi,Oct 24, 2026 14:13 ISTTamil Nadu Chief Minister Vijay received rare praise from the Centre after his TVK government significantly reduced VAT on aviation turbine fuel (ATF), offering relief to airlines amid surging crude prices. Tamil Nadu cut the rate to 16% from 29% at Chennai, and to 1% at all other airports in the state. It earned Vijay swift applause from Civil Aviation Minister Ram Mohan Naidu."Appreciate the Tamil Nadu government's decision to reduce VAT on Aviation Turbine Fuel (ATF), a welcome step for the aviation sector. Thank you, Chief Minister Vijay, for this initiative," the Union Minister tweeted. Naidu underlined that such coordination between the Centre and states was crucial in making air travel more affordable."Making air travel more affordable requires the Centre and States to work together. Our shared priority must always be the passengers," he said. WHY CUT IN JET FUEL TAXES IS SIGNIFICANT?Jet fuel prices have been rising relentlessly since the US-Iran war broke out this February. With the conflict showing no signs of ending anytime soon, airlines globally have been finding it tough to remain airborne due to twin pressures of ATF price hikes and airspace closures.For Indian carriers, two other factors further complicate the situation - a weakening rupee and the closure of Pakistani airspace, which adds hours and more fuel burn for flights to Western nations. Lease rentals and maintenance are dealt in dollars. Against this backdrop, the move by the Vijay government to cut taxes on jet fuel is significant.- Ends