FG Waives The VAT And Customs Duty On LPG Imports

FG Waives The VAT And Customs Duty On LPG Imports

FG eliminates the need for payment of customs duties and VAT on cooking gas imports into Nigeria

Cooking gas imports are no longer subject to VAT or customs duties, according to the federal government. This is stated in a letter that was sent to multiple government departments.

The federal government reportedly decided to waive value-added tax (VAT) and customs duties on the importation of cooking gas, also known as liquefied petroleum gas (LPG), and the equipment that goes with it. The goal of this initiative is to lower cooking gas prices nationwide.

In a letter dated November 28, 2023, the Ministry of Finance informed a number of officials about this decision, including the Chairman of the Federal Inland Revenue Service (FIRS), the Comptroller-General of the Nigeria Customs Service (NCS), and the Special Adviser to the President on Energy. The letter was signed by Wale Edun, the Coordinating Minister of the Economy and Minister of Finance.

Read: 12kg Of Cooking Gas Now Cost N12,500

A part of the letter read:

“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 letter reads.

“Accordingly, the importation of LPG utilizing HS Codes 2711.12.00.00, 2711.13.00.00 and 2711.19.00.00 is exempt from Import Duty and Value-Added Tax. Consequently, the Importation of LPG shall incur a 0% duty rate and 0% VAT rate, effective immediately.”