1. Tamil Nadu cuts VAT on aviation turbine fuel: 16% in Chennai, 1% at other airports
The Tamil Nadu Commercial Taxes and Registration Department has notified reduced VAT on aviation turbine fuel through three notifications issued on October 23, 2026, under the Tamil Nadu Value Added Tax Act. VAT on aviation turbine fuel is now 16% at Chennai airport and 1% at airports outside Chennai. The government says the reduction will benefit airlines, lower ticket costs and make Tamil Nadu more competitive.
Why it matters for exams: This falls under state taxation and the Tamil Nadu government's sector policies, a frequent area in TNPSC Group exams and in the economy section of UPSC Prelims.
Source: dtnext.in