FG moves to crash cooking gas price, removes taxes for importers Nexovant
- The Nigerian government has announced the removal of import duty and value-added tax on cooking gas
- The Nigerian Customs Service announced the development, saying cooking gas is now exempted from taxes
- The service disclosed that importers should obtain Import Duty Exemption Certificate from the Ministry of Finance and a letter of support
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian government, via the Nigeria Customs Service, has disclosed that importing liquified natural gas or cooking gas under HS Codes 2711.12.00.00 and 2711.19.00.00 are now exempt from import duty and value-added tax (VAT).
The development comes as the Customs Service said that all debit notes given to petroleum marketers who imported cooking gas using the codes from August 26, 2019, will be withdrawn in line with previous approvals.
Cooking gas prices to crash as FG removes VAT and import duty Credit: Tim Robberts
Source: Getty Images
Items exempted from import duty and taxes
The Customs disclosed this in a statement on Wednesday, December 18, 2024, signed by its national public relations officer, Abdullahi Maiwada.
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Maiwada noted that in line with President Bola Tinubu’s promise to boost Nigeria’s investment in clean energy and increase domestic gas use, the Customs will implement fiscal incentives under the Presidential Gas for Growth Initiative.
The service image maker stated that under Part 1, Section 5 of the Customs and Excise Tariff Act, machinery, equipment, and spare parts brought into the country for gas use will now attract a zero per cent import duty rate.
He stated that the exemption comprises all equipment related to CNG and cooking gas imported into Nigeria.
According to a Punch report, Maiwada disclosed the items eligible for zero tax to include feed gas for processed gas, CNG, cooking gas, CNG equipment components, conversion and installation services, and other equipment and infrastructure related to CNG, cooking gas, and the Pi-CNG initiative, such as conversion kits.
Customs asks importers to get an exemption certificate
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The Customs spokesman disclosed that it is essential for importers seeking to benefit from the incentives to obtain an Import Duty Exemption Certificate from the Ministry of Finance and a letter of support from the Office of the Special Adviser to the President on Energy.
Energy experts said that the move will significantly crash cooking gas prices nationwide.
They say the move is long overdue, as importers have complained that they spend too much on import duty and VAT.
FG begins clampdown on illegal gas retailers
Meanwhile, Legit.ng earlier reported that the Nigerian Upstreams and Downstream Petroleum Regulatory Authority (NMDPRA) began clamping down on illegal cooking gas retailers in parts of the country.
The authority’s coordinator, Ikechukwu Eseka, stated this during a visit to the NSCDC Commandant in Eket, Cross River State.
The NMDPRA frowned at the activities of resellers, saying that they endanger consumers’ lives.
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Customs sound alarm on how smuggled rice, fuel worsens Nigeria’s forex crisis
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Source: Legit.ng
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