[News] FG moves to crash cost of cooking gas, exempts LPG from VAT and customs duty

The Federal Government has removed VAT and customs duty payments from cooking gas imports. TheCable reports that this move is geared towards crashing the price of the essential commodity.

 

 

The Ministry of Finance conveyed this decision in a letter dated November 28, 2023 and addressed to several officials 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). Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, signed the letter.

 

The letter in part reads

 

“In line with His Excellency, President Bola Tinubu’s commitment to improving the investment climate in Nigeria, increasing the supply of LPG to meet local demand, reducing market prices and promoting clean cooking practices, I hereby affirm Presidential directive dated July 29, 2022, with reference number PRES/88/MPR/99.

 

Accordingly, the importation of LPG utilizing HS Codes 2711.12.00.00, 2711.13.00.00 and 2711.19.00.00 is exempt from Import Duty and Value-Added Tax. Consequently, the Importation of LPG shall incur a 0% duty rate and 0% VAT rate, effective immediately.”

 

 

The ministry also directed the Nigerian Customs Service to comply with the presidential directive, dated July 29, 2022, and withdraw all debit notes issued to petroleum marketers who have imported LPG “using codes 2711.1.2.00.00 and 2711.13.00.00 from August 26, 2019, to the present date”.

 

 

Other items exempted from VAT and duty payment are LPG cylinders, LPG cascades, gas leak detectors, steel pipes, steel valves and fittings, LPG dispensers, gas generators, and LPG trucks, among others.