Tamil Nadu reduces aviation fuel VAT to 1% excluding Chennai
India
Tamil Nadu just dropped the VAT on aviation fuel to 1% for most airports (and 16% for Chennai), making it way cheaper for airlines to operate across the state.
The move is getting a thumbs up from a business group, who say it'll make flying more affordable and help connect Tier II and Tier III cities.
Airlines expected to add routes
With cheaper fuel, airlines are expected to add more routes and flights (good news if you're hoping for easier travel or new job opportunities).
As senior president S. Rethinavelu from the Agri and All Trade Chamber put it, this change could spark growth in tourism, tech, manufacturing, and even help smaller towns become economic hotspots, not just Chennai.