CHENNAI: The Tamil Nadu govt has reduced the value added tax (VAT) on aviation turbine fuel (ATF) supplied to scheduled airlines for intra-state flight operations, aiming to lower air travel costs for business travellers and encourage airlines to expand their services within the state. VAT is reduced from 29% to 16% for refuelling at Chennai airport while it is reduced from 29% to 1% at other airports.The reduction, notified through a govt order issued by the commercial taxes and registration department on Friday, will come into effect at midnight on Oct 31/Nov 1, 2026, and remain in force until midnight on Oct 30/31, 2027.The govt hopes the tax concession will prompt airlines to introduce more routes connecting cities within Tamil Nadu and increase the frequency of scheduled flights, improving connectivity for business travellers.To avail the reduced rate, oil companies must submit a declaration duly filled in and signed by the purchaser along with their monthly returns to the jurisdictional assessing officer.