Economy

FG approves zero import duty, VAT on CNG, LPG

Maharazu Ahmed
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FG approves zero import duty, VAT on CNG, LPG

Other items under the zero-rated VAT include feed gas for all processed gas, CNG and LPG, as well as their equipment components, conversion and installation services for CNG and LPG, all equipment and infrastructure related to the expansion of CNG, LPG and the Presidential CNG Initiative (PCNGI), including conversion kits.

The importation of LPG under HS Codes 2711.12.00.00, 2711.13.00.00 and 2711.19.00.00 is also exempted from both import duty and VAT.

According to a statement on Wednesday by the National Public Relations Officer (PRO) of Nigeria Customs Service (NCS), Abdullahi Maiwada, all debit notes issued to petroleum marketers that imported LPG using the codes from August 26, 2019, to date will be withdrawn in line with previous approvals.

The Comptroller General of Customs, Bashir Adeniyi, stated that the fiscal incentives were part of the Presidential Gas for Growth Initiative.

He said the initiative was to encourage domestic gas utilisation and support Nigeria’s transition to cleaner energy sources.
Adeniyi explained that importers seeking to qualify for the incentives must secure an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and obtain a support letter from the Office of the Special Adviser to the President on Energy.
“These policy changes are designed to reduce living costs, enhance energy security and accelerate Nigeria’s transition to cleaner energy sources,” Adeniyi said.

He also emphasised the importance of compliance, reiterating the NCS commitment to ensuring effective implementation. Adeniyi stated that the NCS was dedicated to the seamless execution of the incentives, urging all stakeholders to align with this national priority.

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