Customs Service has announced it will remove import duties on imported cooking gas Read Full Details
Customs Service has announced it will remove import duties on imported cooking gas Read Full Details
The Nigerian Customs Service has announced that it will remove import duties on imported cooking gas, also known as liquefied petroleum gas, as well as all imported equipment and spare parts relating to compressed natural gas, as an incentive for its use...CONTINUE READING
This was contained in a statement issued by the National Public Relations Officer of the NCS, Chief Superintendent Abdullah Maiwada, on Wednesday.
The materials and products include liquefied petroleum gas-related equipment and replacement parts, and compressed natural gas conversion kits.
Maiwada noted that the incentives were approved to reduce the cost of living and promote Nigeria's transition to clean energy sources. He added that these incentives are in line with President Bola Tinubu's pro-growth initiatives. The statement reads: "In line with President Bola Ahmed Tinubu's commitment to improve the investment climate in Nigeria and increase gas utilisation in the country, the Nigerian Customs Service (NCS) announces the implementation of financial incentives under the President's Gas for Growth Initiative." "In accordance with Section 5, Part 1 of the Customs Act, machinery, equipment and spare parts imported for gas use in Nigeria are currently subject to zero percent (0%) import duty. This exemption applies to all Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) related equipment imported into Nigeria.
"Furthermore, the following items are eligible for Value Added Tax (VAT) exemption: all processed gas feed gas, compressed natural gas, imported LPG, CNG equipment parts, conversion and installation services, LPG equipment parts, conversion and installation services and all equipment and infrastructure (including conversion kits) related to the expansion of CNG, LPG and the Presidential CNG 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.”
He explained 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.
“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,” the statement added.
The NCS assured that it was committed to the effective implementation of these incentives and urged all stakeholders to ensure strict and prompt compliance.
What you should know
The NCS has removed import duties and Value Added Tax on cooking gas imported under the following Harmonised Commodity Descriptions: 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00
All equipment related to CNG and LPG are exempted from import tariffs
These incentives are in line with President Tinubu initiative to expand the use of CNG among Nigerians
The Presidential CNG initiative aims to convert over one million vehicles to CNG by 2027, but it has converted less than 100,000 vehicles so far.
Source: Nairamatrics
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