Federal Government exempts LPG(Cooking Gas) from the list of VATable and Dutiable items

In an auspicious move that is targeted at re-stimulating the nation’s LPG industry, the Government of Nigeria has waived Value Added Tax and Custom Duty Payments on imported cooking gas and its related equipment.

Cooking Gas equipment covered in the new VAT and Custom Duty exemption, includes LPG cylinders, LPG tanks, LPG Pumps and Compressors, Gas leak detectors, Steel pipes, Steel valves LPG dispensers, gas generators, and LPG bridgers and bobtails, and other related accessories,.

In other to ensure the immediate implementation of the new policy, Mr.Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has promptly dispatched a memo to the Nigeria Customs Service, the Federal Inland Revenue Service and other relevant agencies, which reads in part:

 “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.”   

Niglpga.com is excited, and commends the President for acceding to the demands of LPG marketers to institute this policy, which will lower the ex-depot prices of cooking gas and spur more investments in the country’s LPG industry.

The most significant impact of this policy on the populace is the reduction in the retail prices of cooking gas, which is expected to occur from January, provided other price variables remain within normal limits.