Mr Viral
The Federal Government has recently introduced VAT exemptions for a range of energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles, as part of efforts to lower prices.
Finance Minister Wale Edun stated that these steps are aimed at reducing the cost of living, boosting energy security, and accelerating Nigeria’s shift towards cleaner energy sources.
As outlined in an official Gazette from the Ministry of Finance titled; VALUE ADDED TAX (MODIFICATION) ORDER, 2024, 63 items are now excluded from VAT collection by the Nigeria Customs Service (NCS), the Federal Inland Revenue Service (FIRS), and other relevant agencies.
According to the official Gazette, the exclusion of VAT from Automotive Gas Oil (AGO) also called diesel would become effective from October 1, 2024, while other items would be implemented by the relevant agency with approval from the Minister of Finance.
The VAT rate in Nigeria is 7.5% according to 2020 and excludes businesses with less than N25 million turnover in one year.
The 69 items are; CNG/LPG Dual Fuel Vehicles Dedicated LPG Vehicles and CNG/LPG Dual Fuel Vehicles Parts, and semi-knocked down units (for assembly) of CNG and LPG Buses Parts, and semi-knocked-down units (for assembly) of Electric Vehicles Electric Vehicles Electric Vehicles Battery Electric Vehicles Charging System Electric Vehicle Solar Charging System LPG/CNG Conversion Kits CNG Cylinders. CNG Cascades CNG Dispensers Gas Generators CNG Trucks (Bobtails and Bridgers; fixed axle and semi-trailers) Steel Pipes Steel Valves & Fittings SS Tubes & Fittings Storage Tanks (all sizes) Regulators CNG Pumps and Compressors (all types) Steel Pressure Relief Valves Hydraulic press/Rolling machine Heat Treatment Equipment Liquid Level Guage Pumping Housing and Motors Regulator Body Pressure Guage Truck Chassis Metering and Measuring Equipment (including weighbridges, filling scales) Dispensing equipment (dispensing scales, nozzles, gas filling systems) Safety Features (emergency shutoff valves, pressure relief valves, excess flow valves, breakaway couplings,quick release couplings) Gas water heaters Gas burners for industry Gas boilers Gas washing machines and dryers (launderettes) Household or laundry-type washing machines, including machines which both wash and dry. CNG, LPG and Cyrogenic Tubes, pipes and hoses, and fittings thereof (for example joints, elbows, flanges) of plastics. CNG truck heads Gas Leak Detectors Gas air conditioners Cylinder refurbishment equipment Blending skid/unit. Odourizing unit Chromatography unit (GC) LNG Liquefying Equipment, Heat Exchangers, LNG Vapourizers, Regassification Plant, Liquefied CNG, Compression Terminals. LNG Plant, Machinery, Pumps, Compressors, Filters (Including Gas Filters), Weighing Machines, Valves & Equipment. Cyrogenic Storage Tanks, Liquefied CNG Conversion tanks Pipes, Piping Fittings, Flanges used for Liquefied Natural Gas processing Electrical Equipment, including Cables for Liquefied Natural Gas processing Stell Plates, Angles, Bars for Liquefied Natural Gas Processing LNG Related Chemicals Biogas Digester Biogas Compressor De-sulphurization units Dryer Distillation columns for processing biofuels Bio-ethanol refinery equipment Fermentation Tanks Biofuel related Chemicals, Enzymes and Reagents Liquefied Petroleum Gas Compressed Natural Gas Feed Gas Automotive gas oil
Aghogho Udi My name is Aghogho Udi, a writer, journalist, and researcher, deeply intrigued by the political economy of Nigeria and the broader African context. My focus lies in shedding light on the intricate connections between macroeconomics and politics, offering valuable insights that foster comprehension of Africa’s prevailing economic landscape and the world in general.
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