Thursday, December 19, 2024 - The Nigeria Customs Service (NCS) has announced the removal of Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG), also called the cooking gas, and the Compressed Natural Gas (CNG).
It also announced zero per cent import duty on the products.
Its National Public Relations Officer, Mr. Abdullahi Maiwada, disclosed
this in a statement on Wednesday, Dec. 18.
The statement said: “In alignment with President Bola Ahmed
Tinubu’s commitment to enhancing Nigeria’s investment climate and
increasing domestic gas utilisation, the Nigeria Customs Service (NCS)
announces the implementation of fiscal incentives under the Presidential Gas
for Growth Initiative.
“Pursuant to Part 1, Section 5 of the Customs and Excise Tariff Act,
machinery, equipment, and spare parts imported for Nigerian gas utilisation are
now subject to a zero per cent (0 per cent) import duty rate
“This exemption encompasses all equipment related to Compressed Natural
Gas (CNG) and Liquefied Petroleum Gas (LPG) imported into Nigeria.
“In addition, the following items are now zero-rated for Value Added Tax
(VAT): feed gas for all processed gas, Compressed Natural Gas, imported
Liquefied Petroleum Gas, CNG equipment components, conversion and installation
services, LPG equipment components, conversion and installation services, and
all equipment and infrastructure related to the expansion of CNG, LPG, and the
Presidential CNG Initiative, including conversion kits.”
The NCS explained that importers seeking to benefit from these
incentives must obtain an Import Duty Exemption Certificate (IDEC) from the
Federal Ministry of Finance and a letter of support from the Office of the
Special Adviser to the President on Energy.
The statement added: “Furthermore, the importation of LPG under HS Codes
2711.12.00.00, 2711.13.00.00 and 2711.19.00.00 are exempted from both Import
Duty and VAT.
“Consequently, all Debit Notes issued to petroleum marketers who have
imported LPG using these codes from August 26, 2019, to date will be withdrawn
by the NCS in line with previous approvals.”
0 Comments