The Nigeria Customs Service (NCS) yesterday announced the removal of Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG) also known as 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 percent (0%) 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.?

NCS, however, noted 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 reads in part: ?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Debit Notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals.

?These measures are designed to ameliorate the cost of living, bolster energy, security, and accelerate Nigeria?s transition to cleaner energy sources. The NCS, under the leadership of the Comptroller General of Customs, Bashir Adewale Adeniyi, is committed to the effective implementation of these incentives and urges all stakeholders to ensure strict and prompt compliance.? (The Nation)

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