Customs Effects Zero Percent Import Duty On Gas Accessories, Conversion Kits
. Exempts LPG Import From Duty, VAT
By Sulaimon Salau
Better days are ahead for Nigerians in terms of gas usage as the Nigeria Customs Service (NCS) begins the implementation of fiscal incentives under the Presidential Gas for Growth Initiative.
The Comptroller General of Customs, Bashir Adewale Adeniyi, who confirmed this in a statement to Slye News, said this move was in alignment with President Bola Ahmed Tinubu commitment to enhancing Nigeria’s investment climate and increasing domestic gas utilisation.
“Pursuant to Part 1, Section 5 of the Customs and Excise Tariff Act, machinery, equipment, and spare parts imported for Nigerian gas utilisation are now subject to a zero percent (0%) import duty rate,” he stated.
Adeniyi, in a statement signed by the Chief Superintendent of Customs and National Public Relations Officer, Abdullah Maiwada, said the exemption encompasses all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) imported into Nigeria.
“In addition, the following items are now zero-rated for Value Added Tax (VAT): feed gas for all processed gas, Compressed Natural Gas, imported Liquefied Petroleum Gas, CNG equipment components, conversion and installation services, LPG equipment components, conversion and installation services, and all equipment and infrastructure related to the expansion of CNG, LPG, and the Presidential CNG Initiative, including conversion kits.
“It is pertinent to note 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.
“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 stated.
He declared that 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Debit Notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals.
He said these measures are designed to ameliorate the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.
He assured that the NCS, under the leadership of Adeniyi is committed to the effective implementation of these incentives and urges all stakeholders to ensure strict and prompt compliance.
