• Thursday, February 29, 2024
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Cooking gas gets cheaper as FG waives VAT, customs duty on LPG imports

Here’s why Nigerians may pay more for cooking gas in festive period

In a move aimed at making cooking gas more affordable for Nigerians, the Federal Government has announced the exemption of Liquefied Petroleum Gas (LPG) imports from Value Added Tax (VAT) and customs duty.

This decision, communicated through a letter from the Ministry of Finance, is expected to significantly reduce the cost of cooking gas for households and businesses across the country.

A report from TheCable says that the federal government decided to waive customs duty and VAT on importing the commodity and its accessories to crash the price of Liquified Natural Gas (LPG) nationwide.

Read also: Cooking gas price hike: NLNG blames market forces, external factors

The report said the Ministry of Finance conveyed the decision in a letter dated November 28, 2023, and addressed to several officials, including the Special Adviser to the President on Energy, the Comptroller General of Customs, and the Chairman of the Federal Inland Revenue Service (FIRS). The Minister of Finance, Wale Edun, signed the letter.

The letter partly reads: “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.

Read also: Cooking gas price hits record high amid surging cost of living

The letter also directed Nigeria Customs to comply with the presidential directive of July 29, 2023, and withdraw all debit notes issued to oil marketers who have imported the product, using codes 2711.1.200.00 and ‪2722.13.00.00‬ from August 26, 2019, to the present.

Other items exempted from VAT and duty payment are LPG cylinders, cascades, gas leak detectors, steel pipes, valves and fittings, dispensers, gas generators, and trucks.