'Welcome move from Tamil Nadu CM'; Rare praise for Vijay from central govt

NEW DELHI: The central government accorded rare praise to Tamil Nadu Chief Minister C Joseph Vijay for reducing the Value Added Tax (VAT) on aviation turbine fuel. The Centre noted that this move would provide relief to airlines, especially given the current surge in crude oil prices.

In Tamil Nadu, the tax rate in Chennai was reduced from 29 per cent to 16 per cent, and lowered to one per cent at other airports across the state. Union Minister of Civil Aviation Kinjarapu Ram Mohan Naidu commended Vijay for this decision.

"I welcome the Tamil Nadu government's decision to reduce the VAT (Value Added Tax) on Aviation Turbine Fuel (ATF). This is a welcome move for the aviation sector. I thank Chief Minister Vijay for taking the initiative in this regard. The Centre and the states need to work together to make air travel more affordable. Passengers should always be our common priority," Ram Mohan Naidu wrote on social media.

Some few weeks before, PM Modi was in Chennai to inaugurate the second phase of the Chennai Metro Rail project—constructed for Rs 4,900 crore—as well as various other development projects worth over Rs 13,000 crore. On that occasion, the Prime Minister announced that he would work with Chief Minister Vijay for the development of Tamil Nadu.