The Federal Government through the Nigeria Customs Service has said that the importation of Liquefied Petroleum Gas (cooking gas) under HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 are exempted from both import duty and value-added tax.
This is even as the service stated that all debit notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn in line with previous approvals.
This was contained in a statement on Wednesday by the National Public Relations Officer of the NCS, Abdullahi Maiwada.
Maiwada also added that in alignment with President Bola Tinubu’s commitment to enhancing Nigeria’s investment in climate and increasing domestic gas utilisation, “the service will be implementing fiscal incentives under the Presidential Gas for Growth Initiative.”
“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debit notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals,” Maiwada stated.
The NCS spokesperson stressed that 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 per cent import duty rate.
According to him, this exemption encompasses all equipment related to Compressed Natural Gas and Liquefied Petroleum Gas imported into Nigeria.
Maiwada said that in addition, the following items are now zero-rated for 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.”
He pointed out that it is pertinent to note that importers seeking to benefit from these incentives must obtain an Import Duty Exemption Certificate from the Federal Ministry of Finance and a letter of support from the Office of the Special Adviser to the President on Energy.
“These measures are designed to ameliorate the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources,” Maiwada said.
He maintained that the service under the leadership of the Comptroller General of Customs, Adewale Adeniyi is committed to the effective implementation of these incentives even as he urged all stakeholders to ensure strict and prompt compliance.
By Anozie Egole @ThePUNCH
