The Federal Government has removed VAT and customs duty payments from cooking gas imports.
This is according to a letter written to several government agencies.
The Federal Government has according to the letter decided to waive customs duty and value-added tax (VAT) on the importation of liquefied petroleum gas (LPG) also known as cooking gas and its associated equipment. This action aims to bring down the cost of cooking gas across the country.
The Ministry of Finance conveyed this decision in a letter dated November 28, 2023, addressed to several 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). Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, signed the letter.
The Letter reads in part “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,” the letter reads.
“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 also directed the Nigerian Customs Service 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, and LPG trucks, among others.
Ekperikpe Ekpo, the Minister for Petroleum Resources (Gas) had conveyed President Bola Tinubu’s worries about how expensive cooking gas has become and how this is making life tough for most Nigerians.
He pointed out that Nigeria has a lot of gas, but it’s not right that some big companies prefer to sell it overseas instead of making sure there is enough supply for the domestic market.
He emphasized that the government needs to step in because the prices of cooking gas are shooting up like crazy, and dealing with bringing it in and sending it out is a big challenge.
