The Federal Government has eliminated Value Added Tax (VAT) and customs duty payments on imported cooking gas, according to TheCable. This measure, aimed at lowering the price of the essential commodity, was communicated by the Ministry of Finance in a letter dated November 28, 2023. The letter, signed by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, was addressed to various 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).
The excerpt from the letter states:
“In adherence to His Excellency, President Bola Tinubu’s commitment to enhancing the investment climate in Nigeria, increasing the supply of Liquefied Petroleum Gas (LPG) to meet local demand, reducing market prices, and promoting clean cooking practices, I hereby confirm the Presidential directive dated July 29, 2022, with reference number PRES/88/MPR/99.
As a result, 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 instructed the Nigerian Customs Service to adhere to the presidential directive dated July 29, 2022, and revoke 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.
Additional items now exempted from VAT and duty payments include LPG cylinders, LPG cascades, gas leak detectors, steel pipes, steel valves and fittings, LPG dispensers, gas generators, and LPG trucks, among various others.