Federal Government Removes VAT and Customs Duty on Cooking Gas Imports to Lower Prices

According to a reports, the Federal Government has taken a significant step to reduce the price of cooking gas by eliminating VAT and customs duty payments on its imports, Aso Naija Reports.

In a letter dated November 28, 2023, the Ministry of Finance, represented by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, communicated this decision 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 letter reaffirmed a Presidential directive issued on July 29, 2022, with reference number PRES/88/MPR/99, which aimed to improve the investment climate in Nigeria, enhance the supply of LPG to meet local demand, lower market prices, and promote clean cooking practices. Consequently, the importation of LPG using HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 will be exempt from Import Duty and Value-Added Tax (VAT). This means that there will be a 0% duty rate and 0% VAT rate on LPG imports, effective immediately.

In addition to removing VAT and duty payments on LPG imports, the Ministry of Finance instructed the Nigerian Customs Service to comply with a previous presidential directive, dated July 29, 2022, and cancel all debit notes issued to petroleum marketers who imported LPG using codes 2711.1.2.00.00 and 2711.13.00.00 from August 26, 2019, to the present date.

Furthermore, the Ministry of Finance expanded the list of items exempted from VAT and duty payments to include LPG cylinders, LPG cascades, gas leak detectors, steel pipes, steel valves and fittings, LPG dispensers, gas generators, and LPG trucks, among others. These measures are intended to further support the LPG industry and make cooking gas more accessible and affordable for the Nigerian population.