– Exempts LPG and CNG from VAT
Esther Oritse
Lagos — The Nigeria Customs Service (NCS) has announced the implementation of fiscal incentives to support the Federal Government’s Gas for Growth Initiative, aimed at enhancing the investment climate, boosting domestic gas utilization, and advancing Nigeria’s transition to cleaner energy sources.
Under the provisions of Part 1, Section 5 of the Customs and Excise Tariff Act, the NCS has approved a zero percent (0%) import duty on machinery, equipment, and spare parts for gas utilization projects. This policy covers all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).
Additionally, the following items are now exempt from Value Added Tax (VAT) namely Feed gas for processed gas, CNG, and LPG.
Equipment, components, and services for CNG and LPG conversion and installation.
Infrastructure and conversion kits under the Presidential CNG Initiative.
Furthermore, LPG imports under HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 are exempt from both Import Duty and VAT.
The NCS clarified that any debit notes issued to petroleum marketers for LPG imports under these codes since August 26, 2019, will be withdrawn in alignment with previous government approvals.
To access these incentives, importers must obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and a support letter from the Office of the Special Adviser to the President on Energy.
Comptroller General of Customs Adewale Adeniyi assured the public of the agency’s commitment to effectively implementing these measures. He stated that the incentives are designed to lower living costs, enhance energy security, and encourage the adoption of cleaner energy solutions in Nigeria.
The NCS has urged stakeholders to adhere strictly to the outlined procedures and timelines to maximize the benefits of these fiscal policies.
