The announcement was made during a morning session in the Legislative Assembly, where Vijay handed a copy of the notification to the press.
The 29% VAT had long been the highest in the country, forcing carriers like IndiGo and Air India to limit refueling stops at Chennai and shift cargo to alternative hubs.
Airlines predict that the slashing of the tax will cut fuel costs by roughly ₹15 per litre, translating into a 3–5% drop in domestic fares and encouraging operators to add new aircraft to their Chennai schedules.
Civil Aviation Minister Ram Mohan Naidu tweeted on X, "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."
The policy will run for twelve months from midnight on November 1; state officials say a review will be held at the end of the period to gauge the impact on passenger volumes and revenue.
For Chennai’s aviation workforce, the move means a steadier stream of flights and a potential rise in job security for ground crew and maintenance staff.