THE Nigeria Customs Service (NCS) yesterday announced the removal of Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG), also called the cooking gas, and the Compressed Natural Gas (CNG).
It also announced zero per cent import duty on the products.
Its National Public Relations Officer, Mr. Abdullahi Maiwada, broke the news in a statement.
The statement said: “In alignment with President Bola Ahmed Tinubu’s commitment to enhancing Nigeria’s investment climate and increasing domestic gas utilisation, the Nigeria Customs Service (NCS) announces the implementation of fiscal incentives under the Presidential Gas for Growth Initiative.
“Pursuant to Part 1, Section 5 of the Customs and Excise Tariff Act, machinery, equipment, and spare parts imported for Nigerian gas utilisation are now subject to a zero per cent (0 per cent) import duty rate.
“This exemption encompasses all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) imported into Nigeria.
“In addition, the following items are now zero-rated for Value Added Tax (VAT): feed gas for all processed gas, Compressed Natural Gas, imported Liquefied Petroleum Gas, CNG equipment components, conversion and installation services, LPG equipment components, conversion and installation services, and all equipment and infrastructure related to the expansion of CNG, LPG, and the Presidential CNG Initiative, including conversion kits.”
The NCS explained that importers seeking to benefit from these incentives must obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and a letter of support from the Office of the Special Adviser to the President on Energy.
The statement added: “Furthermore, the importation of LPG under HS Codes 2711.12.00.00, 2711.13.00.00 and 2711.19.00.00 are exempted from both Import Duty and VAT.
“Consequently, all Debit Notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals.”
Also, the Presidential Compressed Natural Gas Initiative (P-CNGI) yesterday expressed optimism that the current 170 CNG conversion centres in Nigeria will increase to 200 at the end of this month.
The centres hit 170 with the inauguration of Portland Gas Conversion centres at Kado in Abuja.
Addressing reporters yesterday in Abuja, P-CNGI’s Chief Executive Officer Michael Oluwagbemi said the initiative, which has doubled its target for this, hoped to hit 500 conversion centres next year.
He said: “Before the end of this year, I promise that in the next two weeks, we will get to 200. We are already looking and certifying at least additional 35 to 40 in our record.
“I believe we will get to 40 at the end of this year. That is double our target. You remember this time last year I told you our target was 100 and now it is 200.
“Next year, we have set a target of 500 for us, and I believe we will blow.”