As part of efforts to reduce the price of cooking gas to lessen the impact of the high cost on Nigerians,,the Federal Government has exempted the importation of Liquified Petroleum Gas (LPG) and its equipment from the payment of customs duty and Value Added Tax (VAT).
This was contained in a letter signed by Wale Edun,the coordinating Minister of the economy and Minister of Finance to key Parastatals under the Federal Government current matters understands.
The letter dated November 28, 2023) and to 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). said the measure is “In line with His Excellency, President Bola Tinubu’s commitment to improving the investment climate in Nigeria, increasing the supply of LPG to meet local demand, reducing market prices and promoting clean cooking practices, I hereby affirm Presidential directive dated July 29, 2022, with reference number PRES/88/MPR/99,”
“Accordingly, 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 instructed the NCS and FIRS to comply with the directive pending its official gazetting.
It also directed the NCS to comply with the presidential directive, dated July 29, 2022, and withdraw 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”.
Other items exempted from VAT and duty payment are LPG cylinders, LPG cascades, gas leak detectors, steel pipes, steel valves and fittings, LPG dispensers, gas generators, LPG trucks, among others.
The decision on exempting LPG from import duties according to the Special Adviser to the President on Energy Olu Verheijen, was taken after consultations with stakeholders revealed that the lack of a clear fiscal directive has hindered investments in the LPG sector.
Verhejen who spoke while informing the Chairman of the Nigerian Alliance for Clean Cooking of the exemptions in a separate letter, dated November 30, 2023.ssid the rise in the prices of cooking gas was caused by paucity of investment and an increase in the use of unhealthy fuels such as kerosene .
