Determined to ensure cooking gas is more affordable for every household using it in Nigeria, the Federal Government has announced the waiver of Liquefied Petroleum Gas (LPG) imports from Value Added Tax (VAT) and customs duty.
By Ademu Usman Idakwo
This decision was made known through a letter from the Ministry of Finance and it was expected to significantly reduce the cost of cooking gas for households and businesses across the country.
The letter said “The federal government decided to waive customs duty and VAT on importing the commodity and its accessories to crash the price of Liquified Natural Gas (LPG) nationwide.
The Ministry of Finance had conveyed the decision in a letter dated November 28, 2023, and sent to several offices, including the Special Adviser to the President on Energy, the Comptroller General of Customs, and the Chairman of the Federal Inland Revenue Service (FIRS).
The letter which was personally signed by the Minister of Finance, Wale Edu reads, “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 memo also asked Nigeria Customs to comply with the presidential directive of July 29, 2023, and withdraw all debit notes issued to oil marketers who have imported the product, using codes 2711.1.200.00 and 2722.13.00.00 from August 26, 2019, to the present.
Also, some items granted waivers from VAT and duty payment were LPG fittings, dispensers, gas generators, trucks, cylinders, cascades, gas leak detectors, steel pipes and valves.
