LPG and CNG VAT Axed: Exploring the Impact on Fuel Costs
The Nigeria Customs Service (NCS) has announced the removal of Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG), along with a zero percent import duty on related equipment.
This initiative is part of the Presidential Gas for Growth Initiative, aiming to enhance domestic gas utilization and transition to cleaner energy sources.
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.
Additionally, the importation of LPG under specific Harmonized System (HS) Codes is exempted from both Import Duty and VAT.
These measures are designed to reduce living costs, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.