• Tue. Apr 23rd, 2024

Federal Government Exempts Imported Liquefied Petroleum Gas From Customs Duty, VAT

In a significant move aimed at reducing the cost of cooking gas across the country, the Federal Government has granted exemption from customs duty and value-added tax (VAT) to imported Liquefied Petroleum Gas (LPG) and its associated equipment.

The Ministry of Finance, in a letter dated November 28, 2023, addressed to key stakeholders including the Special Adviser to the President on Energy, the Comptroller-General of the Nigeria Customs Service (NCS), and the Chairman of the Federal Inland Revenue Service (FIRS), unveiled this strategic decision. The exemption aligns with President Bola Tinubu’s commitment to fostering Nigeria’s investment climate and encouraging clean cooking practices.

The missive referenced a presidential directive dated July 29, 2022 (PRES/88/MPR/99), affirming the commitment to bolstering Nigeria’s investment climate, amplifying LPG supply to meet local demand, lowering market prices, and advocating for clean cooking practices.

“As per the directive, the importation of LPG utilizing HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 will be exempt from Import Duty and Value-Added Tax, thereby incurring a 0% duty rate and 0% VAT rate, effective immediately,” the letter stated.

The Ministry further instructed the NCS and FIRS to adhere to the directive until its official gazetting. Additionally, the NCS was directed to retract all debit notes issued to petroleum marketers who imported LPG using specific codes from August 26, 2019, to the present date.

The exemption doesn’t limit itself to LPG alone; it extends to various accompanying items such as LPG cylinders, cascades, gas leak detectors, steel pipes, valves, fittings, dispensers, generators, trucks, among others, all exempted from VAT and duty payments.

This move is anticipated to significantly reduce the cost of cooking gas in Nigeria and promote cleaner cooking practices, aligning with the government’s commitment to sustainable energy practices and enhancing the investment climate.

Hyacinth Beluchukwu Nwafor

Hyacinth Beluchukwu Nwafor is a seasoned journalist and the CEO/Founder Belch Digital Communications, publishers of Hybrid News Nigeria.

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